Effective rate
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Effective rate
 The Rs rate used in those formulas are all effective rates. 

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Google Drive:share a document 
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  One example is given below.  
       https://drive.google.com/file/d/1OZlRLayMPGTKX4xxQB6mDkFZBrZQGOwq/view?usp=sharing

  Step 1: launch Google drive
          https://drive.google.com/drive/u/1/my-drive
          -> click 'My Drive'

  Step 2: upload a file (any file)

  Step 3: click the file 
             --> Get Link
             --> Copy the link [One example is shown above]
             --> Click 'Viewer'
             --> [Anyone with the link]

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Effective rate examples
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1) APR is 10% compounded semi-annually
    R(effective semi-annual rate) = 5%

2) APR is 8% compounded quarterly
    R(effective quarterly) = 2%

3) APR is 5% compounded daily
    R(effective daily rate) = 0.05/365

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Generate an R data set for all the zip files for French's Data Library
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Manually check the website
---------------------------
   1) Go to Fench's Data Library at
        http://mba.tuck.dartmouth.edu/pages/faculty/ken.french/data_library.html
   2) Right-click  your mouth
         View Page Source 
         
    infile<-'http://mba.tuck.dartmouth.edu/pages/faculty/ken.french/data_library.html'
    x<-readLines(infile)

   hint:  path<-'http://mba.tuck.dartmouth.edu/pages/faculty/ken.french/ftp/'

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Effective conversion: Method I
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Here is our 2-step approach:
   Step 1: Which effective rate is given?
   Step 2: convert one effective rate to another (apply the future value formula twice).

Step 1: Since the APR is 10% compounding semiannually, we are given an effective semi-annual 
        rate of 5% (10%/2). This is also true for other compounding frequencies. For example, 
        if the compounding frequency is quarterly instead of semiannually, we are given an 
        effective quarterly rate of 2.5% (0.1/4).
Step 2: Assume that we deposit $1 today; we should receive the same amount in one year regardless 
       of whether we apply an effective annual or semiannual rate. 

        FV=1(1+0.05)^2						
        FV=1*(1+R)^1			

In other words, we have 
        1(1+R(annual)=1(1+R(effective_semi)^2 

 Hence, we have R(annual)=(1+0.05)^2-1=0.1025. 
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