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45. Given the following returns and return relatives over the past four years, compute the arithmetic mean (AM) and geometric mean (GM) rates of return.
45. Given the following returns and return relatives over the past four years, compute the arithmetic mean (AM) and geometric mean (GM) rates of return. Period Return Relative Return Relative t1 1.05 0.05 t2 0.90 -0.10 t3 1.11 0.11 t4 0.98 -0.02 a) AM = 4.000%, GM = 1.010% b) AM = 1.000%, GM = 0.692% * c) AM = 0.692%, GM = 4.000% d) AM = 1.000%, GM = 1.0692%
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College Accounting A Contemporary Approach
Authors: David Haddock, John Price, Michael Farina
4th edition
978-1259995057, 1259995054, 978-0077503987, 77503988, 978-0077639730
