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An investor is evaluating the historical performance of an investment fund. The following annual returns are provided to the investor: Fund Value Year 0 $140

An investor is evaluating the historical performance of an investment fund. The following annual returns are provided to the investor:

Fund Value
Year 0$140
Year 1154
Year 2172
Year 3159
Year 4154
Year 5149

Required:

a. Calculate the investment returns for each year.

ReturnReturn Relative
Year 1%
Year 2%
Year 3%
Year 4%
Year 5%

b. Compute the arithmetic mean return.

c. Calculate the geometric mean return.

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