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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%
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% 18.0% 16.6% - 50.0% 43.3% 1.2% - 16.5% 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? 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 45.6% a. What is the arithmetic average return over the 10-year period? The arithmetic average return over the 10-year period is 8.05 %. (Round to two decimal places.) b. What is the geometric average return over the 10-year period? First find the future value of investing $1 today, using the following formula: FV = $1 x X... X x ((1+R) (1 + R) X (1+RT)) %. (Round to four decimal places.) 45.2% - 3.0%
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