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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.) 19.2% 16.7%
Ten annual returns are listed in the following table: (Click on the following icon in order to copy its contents into a spreadsheet.) 19.2% 16.7% 17.8% - 49.4% 43.1% 1.4% - 16.4% 45.6% 44.8% - 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 %. (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 x ((1+ +R1) *(1+R2) *.* (1+RT)) Then use the following formula and solve for R: 10 FV = $1 *(1 + R) The geometric average return, R, over the 10-year period is %. (Round to four decimal places.) c. If you invested $100 at the beginning, how much would you have at the end? If you invested $100 at the beginning, at the end you would have $. (Round to the nearest cent.)
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