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what are the calculations to find the year end amount using geometric return of -5%. i understand how to get the arthmetic return but not
what are the calculations to find the year end amount using geometric return of -5%. i understand how to get the arthmetic return but not the geometric. please show step by step
Exhibit 1 Year-End Amount Using Geometric Return of -5% Actual Return for the Year (%) Year-End Amount Using Arithmetic Return of 4% Year-End Amount 1.0000 1.0000 1.0000 Year 0 1.0400 0.9500 -50 Year 1 Year 2 0.5000 0.6750 0.8573 0.9025 35 1.0816 1.1249 Year 3 27 0.8574 Step by Step Solution
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