Ten annual returns are listed in the following table. a. What is the arithmetic average return over

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Ten annual returns are listed in the following table.

a. What is the arithmetic average return over the ten-year period?
*b. What is the geometric average return over the ten-year period?
c. If you invested $100 at the beginning, how much would you have at theend?

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Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Question Posted: Jan 14, 2012 02:14 AM

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Ten annual returns are listed in the following table. a. What is the arithmetic average return over

Question:

-19.9% 16.6% 18.0% -50.0% 43.3% 1.2% -16.5% 45.6% 45.2% -3.0%

Step by Step Answer:

Plan For part a to compute the arithmetic average use Eq113 For part b to compute the geometric ...View the full answer

Fundamentals of Corporate Finance

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