Question
An investor is evaluating the historical performance of an investment fund. The following annual returns are provided to the investor: Fund Value Year 0 $110
An investor is evaluating the historical performance of an investment fund. The following annual returns are provided to the investor:
| Fund Value | |
|---|---|
| Year 0 | $110 |
| Year 1 | 121 |
| Year 2 | 133 |
| Year 3 | 120 |
| Year 4 | 115 |
| Year 5 | 110 |
Required:
a. Calculate the investment returns for each year.
b. Compute the arithmetic mean return.
c. Calculate the geometric mean return.
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Personal Financial Planning For Executives And Entrepreneurs
Authors: Michael J. Nathanson, Jeffrey T. Craig, Jennifer A. Geoghegan, Nadine Gordon Lee, Michael A. Haber, Seth P. Hieken, Matthew C. Ilteris, D. Scott McDonald, Joseph A. Salvati, Stephen R. Stelljes
1st Edition
3030405273, 978-3030405274
