Question
You have invested in the UK Stock Market. Details on the performance of the market are given below: Date UK JAN-07 100.00 JAN-08 120.96 JAN-09
You have invested in the UK Stock Market. Details on the performance of the market are given below:
| Date | UK |
| JAN-07 | 100.00 |
| JAN-08 | 120.96 |
| JAN-09 | 140.10 |
| JAN-10 | 129.43 |
| JAN-11 | 90.02 |
| JAN-12 | 110.06 |
| JAN-13 | 127.31 |
| JAN-14 | 114.00 |
Calculate the geometric return on the UK and compare it to the arithmetic return. Comment on and explain the differences between the UK arithmetic and geometric return.
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Personal Finance An Integrated Planning Approach
Authors: Ralph R Frasca
8th edition
136063039, 978-0136063032
