Annualizing HPY: EAY vs. rMM
I know all these formulas have been covered extensively already but I have a specific question regarding EAY and rMM.
Both formulas apparently annualize the HPY but you get the rMM by multiplying with 360/t whereas you get the EAY by using ^365/t.
Is that because rMM does not use compound interest and EAY does?
Jeez, all these seem so completely random to me…
Being vague is almost as much fun as that other thing
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