In this question, we have to find an annualized return. To annualized the returns I used the BEY formula and converted months and years to days but the solution suggests that it should be solved
23 months Annualized rate =[ (1+50%) ^1/(23/12) ] -1
What is the rationale behind using the suggested formula?
Greetings friend! I believe simplest formula to use for Investment B is… 23 months Annualized rate = [(1+0.50)^(12/23)] -1.
Because you’re solving for R here, and 1 + R = 1.5^(12/23)
You stick with months because you’re given months for Investment B. It’s the cleanest most error-free way to calculate based on apples to apples. Does this help?
Cheers - good luck - you got this 
yes it does. thanks a ton