Refer to Exercise 3.52. The values of the DJIA on the first day of trading in 2005,

Question:

Refer to Exercise 3.52. The values of the DJIA on the first day of trading in 2005, 2006, and 2007 were 10,729.43, 10,847.41, and 12,474.52. a Calculate the geometric mean rate of return for the DJIA from 2005 to 2010. b If an investment of $ 100,000 is made in 2005 and the portfolio performs with returns equal to those of the DJIA, what is the investment worth in 2010?

In Exercise 3.52

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...