An investor is evaluating the historical performance of an investment fund. The following annual returns are provided
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Question:
An investor is evaluating the historical performance of an investment fund. The following annual returns are provided to the investor:
Fund Value | |
---|---|
Year 0 | $140 |
Year 1 | 154 |
Year 2 | 172 |
Year 3 | 159 |
Year 4 | 154 |
Year 5 | 149 |
Required:
a. Calculate the investment returns for each year.
|
b. Compute the arithmetic mean return.
c. Calculate the geometric mean return.
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