12%/3=4%

The calculation method of annualized rate of return is to convert the current rate of return (daily rate of return, weekly rate of return, monthly rate of return) into annual rate of return, which is a theoretical rate of return, not an actual rate of return.

The annualized rate of return of the fund = (income/principal)/(investment days /365 days) * 100%. The annualized rate of return of the fund refers to the annualized rate of return converted from the rate of return obtained during the duration of the fund.