Question
The estimated average return (E(R)) on an investment portfolio is 10.79%. Assume that the returns follow a normal distribution and the estimated standard deviation of
The estimated average return (E(R)) on an investment portfolio is 10.79%.
Assume that the returns follow a normal distribution and the estimated standard deviation of returns is 21.78% per year.
What is the expected CAGR (geometric mean) of returns?
Enter the answer as a decimal (with 4 decimal places). For example 3.7124% = 0.0371
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart
6th Edition
125991965X, 978-1259919657
