Calculate the geometric return on the Mauritius Stock Market and compare it to the arithmetic return. Comment

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Calculate the geometric return on the Mauritius Stock Market and compare it to the arithmetic return.

Comment on and explain the differences between the Mauritius arithmetic and geometric return. (20 marks)

You have invested in the Mauritian stock market. Details on the performance of the market are given below:
Date Mauritius Jan-13 100 Jan-14 117.36 Jan-15 131.46 Jan-16 122.47 Jan-17 86.136 Jan-18 110.06 Jan-19 126.16 Jan-20 116.00

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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