Question
A portfolio has 60% probability to gain 50% per year and 40% probability to lose 45% per year. Please calculate the arithmetic rate of return
A portfolio has 60% probability to gain 50% per year and 40% probability to lose 45% per year. Please calculate the arithmetic rate of return and geometric rate of return of the portfolio. The initial value of the portfolio is 1 million dollar. After 10 years, what is the most likely value of this portfolio?
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New Venture Creation A Framework For Entrepreneurial Start-ups
Authors: Paul Burns
2nd Edition
1352000504, 978-1352000504
