Question
Ten annual returns are listed in the following table:(Click on the following icon in order to copy its contents into a spreadsheet.) 19.6% 16.2% 18.3%
Ten annual returns are listed in the following table:(Click on the following icon in order to copy its contents into a spreadsheet.) 19.6% 16.2% 18.3% 49.1% 43.5% 1.9% 16.9% 45.7% 45.2% 3.4% 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? Question content area bottom Part 1 a. What is the arithmetic average return over the 10-year period? The arithmetic average return over the 10-year period is 8.088.08%. (Round to two decimal places.) Part 2 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=$11+R11+R21+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 enter your response here%. (Round to four decimal places.)-19.6 Return (%) -19.6 16.2 18.3 -49.1 43.5 1.9 -16.9 45.7 45.2 -3.4
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