An investor purchased $1,000 of a mutual fund’s shares. The fund had the following total returns over a 3-year period: Year 1: -40%, Year 2: +30%, Year 3: +25%.

Compute the 

[1] holding period return, 

[2] arithmetic mean return & 

[3] geometric mean return (show your calculation below)

Answer rating: 100% (QA)

A Holding period return is the sum of all returns Holding period return 403025 Holding period ... View the full answer