Question: a. What is the arithmetic average retum over the 10 -year period? The arithmetic average return over the 10-year period is 8.05%. (Round to two
a. What is the arithmetic average retum over the 10 -year period? The arithmetic average return over the 10-year period is 8.05%. (Round to two decimal placen.) b. What is the geometric average return over the 10 -year period? First find the future value of investing $1 today, using the following formula: FV=$1((1+R1)(1+R2)(1+Rr)) Then use the following formula and solve for R : FV=$1(1+R)10 The geometric average return, R, over the 10 -year period is \%. (Round to four decimal places.)
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