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R2012a Documentation → Financial Toolbox
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Contents

Index

• Getting Started

• User's Guide

• Currency and Price

• Financial Data Charts

• Amortization and Depreciation

• Present Value

• Future Value

• Payment Calculations

• Rates of Return

• Cash Flow Sensitivities

• Fixed-Income Securities

• Portfolio Optimization Objects

• Portfolio Analysis

• Financial Statistics

• Derivatives

• Credit Risk Utilities

• GARCH Processes

• Financial Time Series Object and File Construction

• Financial Time Series Arithmetic

• Financial Time Series Math

• Financial Time Series Descriptive Statistics

• Financial Time Series Utility

• Financial Time Series Data Transformation

• Financial Time Series Indicator

• Financial Time Series GUI

• Financial Time Series Tool

• Release Notes

effrr - Effective rate of return

Syntax

Return = effrr(Rate, NumPeriods)

Arguments

`Rate`	Annual percentage rate. Enter as a decimal fraction.
`NumPeriods`	Number of compounding periods per year, an integer.

Description

Return = effrr(Rate, NumPeriods) calculates the annual effective rate of return. Compounding continuously returns Return equivalent to (e^Rate-1).

Examples

Find the effective annual rate of return based on an annual percentage rate of 9% compounded monthly.

Return = effrr(0.09, 12)

returns

Return =

         0.0938 or 9.38%

See Also

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