Question
QUESTION 5: You are evaluating the performance of the Hillier Mutual Fund. The following table reflects the annual returns of the fund during the last
QUESTION 5: You are evaluating the performance of the Hillier Mutual Fund. The following table reflects the annual returns of the fund during the last five years. The fund started January 1, 2013. 2013 11% 2014 15% 2015 -4% 2016 -9% 2017 14% a. Calculate the arithmetic average return on the fund over the past five years. (2 points) b. Calculate the geometric (compound) average return on the fund for the same period. (4 points) c. If you had invested $1,000 in the fund at the beginning of January, 2013 how much would you have in your account at the end of December 2017? (4 points) d. What is the holding period return for the five-year period? (3 points)
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