Question
You earn 10% (R1) in year 1.-5% (R2) in year 2 and 25% (R3) in year3 a) What is your arithmetic average return? b)
You earn 10% (R1) in year 1.-5% (R2) in year 2 and 25% (R3) in year3 a) What is your arithmetic average return? b) What is your geometric average return? c) What is your IRR if you invested $100 at the beginning year 1, $200 at the beginning of year 2 and $300 at the beginning of year 3?
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
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