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Suppose that an investment has yielded the following historical annual returns for the past 5 years: Year 1 = 12% Year 2 = 15% Year
Suppose that an investment has yielded the following historical annual returns for the past 5 years: Year 1 = 12% Year 2 = 15% Year 3 = -7% Year 4 = 4% Year 5 = 30% = Express your answers to the following questions in percentage terms (eg. 46.7%) and round according to the instructions. What is the arithmetic average annual return for the past 5 years? % (Round your answer to 1 decimal place) What is the geometric average rate of return for the past 5 years (CAGR)? % (Round your answer to 2 decimal places). What is the standard deviation in returns for the past 5 years? % (Round your answer to 1 decimal place)
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