Risk Measures
Using the Rule of 72, approximately how long will it take for an investment to double at 6% annual return?
Rule of 72: 72 / rate = years to double. Quick mental math tool.
Complete Analysis & Legal Rationale
The Rule of 72 estimates doubling time: 72 / Interest Rate = Years to Double. At 6%: 72 / 6 = 12 years to double the investment.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
6 years would require a 12% return (72/12=6).
8 years would require a 9% return (72/9=8).
10 years would require approximately 7.2% return.
Matches the verified teaching point in the explanation.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA Series 7 outline.