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 $170
An investor is evaluating the historical performance of an investment fund. The following annual returns are provided to the investor:
| Fund Value | |
|---|---|
| Year 0 | $170 |
| Year 1 | 187 |
| Year 2 | 211 |
| Year 3 | 198 |
| Year 4 | 193 |
| Year 5 | 188 |
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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Principles Of Corporate Finance
Authors: Richard Brealey
10th Global Edition
0071314172, 9780071314176
