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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 $130
An investor is evaluating the historical performance of an investment fund. The following annual returns are provided to the investor:
Fund Value | |
---|---|
Year 0 | $130 |
Year 1 | 143 |
Year 2 | 159 |
Year 3 | 146 |
Year 4 | 141 |
Year 5 | 136 |
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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