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Assume you see the returns on the right over the next 4 years. What is the geometric average return? Let's say that you $1,000 today.

Assume you see the returns on the right over the next 4 years. What is the geometric average return?


Let's say that you $1,000 today. Over the next year the market drops 50 percent. In Scenario 1, you panic and sell all of your stock, locking in your loss. You go and buy Treasury bills, which give you a safe guaranteed 3 percent annual return. And scenario 2 is you stay calm and don't sell or change anything. 



How much is Liyon's portfolio at the end of Year 6 in scenario 2?

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