Compute the holding period return for the five-year period.

2) Compute the arithmetic mean annual return.

3) Compute the geometric mean annual return. How does it compare with the arithmetic mean annual return?

 

Ulli Lohrmann and his wife, Suzanne Lohrmann, are planning for retirement and want to compare the past performance of a few mutual funds they are considering for investment. They believe that a comparison over a five-year period would be appropriate. They are given the following information about the Rhein Valley Superior Fund that they are considering. 1 23 2 4 LO 5 Year Assets Under Management at the Beginning of Year ($) 30 Million 45 Million 20 Million 25 Million 35 Million 15 -5 10 15 3 Net Return (%)