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Assume 5 years have passed since my original $5,000 investment. The mutual fund increased by 18% in year 1,18% in year 2, 25% in year
- Assume 5 years have passed since my original $5,000 investment. The mutual fund increased by 18% in year 1,18% in year 2, 25% in year 3, 15% in year 4, 30% in year five, and declined by 40% in year 6.
- What was the arithmetic average annual rate of return over the five-year period?
- What is the value of the fund after 6 years?
- Based on a PV of $5000, and a FV as calculated in part b, what is the geometric rate of return on your investment?
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