CONTENT:
Running Head: Article CritiqueThe Simple Meaning of Complex Rates of Return [Student Name][Course Title][Instructor][Date] The Simple Meaning of Complex Rates of ReturnArticle CritiqueDate Due: Month Day, YearBy: FirstName M.I. LastName (suffix if applicable)Axel Pierru (2010): The Simple Meaning of Complex Rates of Return, The Engineering Economist: A Journal Devoted to the Problems of Capital Investment, 55:2, 105-117The article under review provides a logical system and its explanation for interpreting and manipulating interest rates or rate of return mainly in scenarios where the rate of return includes an imaginary component. Interpreting or understanding the meaning of an equation or the calculation of rate of return can be very difficult and somewhat impossible and this phenomenon is backed by existing literature and researches in the article. Thus, the article attempts to build a system which can be used in finding out the meaning and interpreting complex rates of return specifically when an imaginary component is present. The system designed by the author is based on a portfolio which is composed of two different assets which have different risks and thus differing rates of return. The rates of return of each of the assets are assigned the symbols ρA and ρB for a specific period of time for use in calculations and explanation. The model is based on the assumpti...