Intersect Investment Fund's annual returns for the decade (2011 through 2020) are shown below: Year 2011...

 

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Intersect Investment Fund's annual returns for the decade (2011 through 2020) are shown below: Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Annual Return 1.1% 12.2% 6.0% 3.3% 9.0% -1.6% 14.9% 12.0% -15.3% 7.8% a. Calculate Intersect's arithmetic average rate of return over this period. b. Calculate Intersect's geometric average rate of return over this period. c. Suppose you invested $1000 in Intersect at the start of 2011, and you invested another $1000 in Intersect at the start of 2016. What would your investment be worth at the end of 2020? Intersect Investment Fund's annual returns for the decade (2011 through 2020) are shown below: Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Annual Return 1.1% 12.2% 6.0% 3.3% 9.0% -1.6% 14.9% 12.0% -15.3% 7.8% a. Calculate Intersect's arithmetic average rate of return over this period. b. Calculate Intersect's geometric average rate of return over this period. c. Suppose you invested $1000 in Intersect at the start of 2011, and you invested another $1000 in Intersect at the start of 2016. What would your investment be worth at the end of 2020?

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a To calculate the arithmetic average rate of return you sum up all the annual returns and then divi... View the full answer