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 $200
An investor is evaluating the historical performance of an investment fund. The following annual returns are provided to the investor:
| Fund Value | |
|---|---|
| Year 0 | $200 |
| Year 1 | 220 |
| Year 2 | 250 |
| Year 3 | 237 |
| Year 4 | 232 |
| Year 5 | 227 |
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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Applications In Energy Finance
Authors: Christos Floros, Ioannis Chatziantoniou
1st Edition
3030929566, 978-3030929565
