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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.) - 19.5%
Ten annual returns are listed in the following table: (Click on the following icon in order to copy its contents into a spreadsheet.) - 19.5% 16.2% 17.9% - 49.2% 43.2% 1.5% - 16.7% 45.7% 45.2% -3.9% 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 8.04 %. (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.)
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