Calculating HPR

CFA Level I
#1

Can someone explain how to solve below equation for HPR (1+HPR) power 365/90 = 10%

#2

(1+x)^4.0556 = 1.10 1/4.0556 = 0.2466 (1+x) = (1.10)^0.2466 (1+x) = 1.0238 x = 0.0238 --> 2.38% = HPR

#3

Thanks… Missed adding 1 to right side.

#4

or plug all the options in X