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Please help me answer this question parts b and c with clear answers. Thank you Ten annual returns are listed in the following table: (Click
Please help me answer this question parts b and c with clear answers. Thank you
Ten annual returns are listed in the following table: (Click on the following icon in order to copy its contents into a spreadsheet.) 19.9% 16.1% 17.7% 49.4% 43.1% 1.3% - 16.6% 45.8% 44.9% -3.1% a. What is the arithmetic average return over the 10-year period? b. What is the geometric average return over the 10-year period? c. If you invested $100 at the beginning, how much would you have at the end? a. What is the arithmetic average return over the 10-year period? The arithmetic average return over the 10-year period is 7.99%. (Round to two decimal places.) b. What is the geometric average return over the 10-year period? To find the geometric average return, use the following formulas. First find the future value of investing $1 today, using the following formula: FV=$1*((1+R1) *(1+R2) *** *(1+RT)) Then use the following formula and solve for R: FV= $1(1 + R) 10 The geometric average return, R, over the 10-year period is [%. (Round to four decimal places.)Step by Step Solution
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