Take a look back at Figure 1.1, which showed the value of a $1 investment after 96

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Take a look back at Figure 1.1, which showed the value of a $1 investment after 96 years. Use the value for the small-company stock investment to check the geometric average in Table 1.5.

Figure 1.1

Value of a $1 investment FIGURE 1.1 100,000 10,000 1,000 100 10 .10 1926 1936 A $1 Investment in Different

Table 1.5

Geometric versus Arithmetic Average Returns: 1926-2021 Geometric Mean 10.5% 12.1 6.1 5.5 5.0 3.3 2.9 Series

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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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