Calculate the arithmetic and geometric average rates of return for the five-year period shown in the following
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Question:
Calculate the arithmetic and geometric average rates of return for the five-year period shown in the following table.
Year | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
---|---|---|---|---|---|---|---|---|---|---|
Return | 7% | 10% | 6% | 13% | 9% | 1% | 20% | 6% | 5% | 17% |
What were the arithmetic average and geometric average returns for this 10-year period?
The arithmetic average returns for the 10-year period year were %. Round your answer to the nearest two decimal places.
The geometric average returns for the 10-year period year were %. Round your answer to the nearest two decimal places.
Related Book For
Statistical Techniques in Business and Economics
ISBN: 978-0078020520
16th edition
Authors: Douglas Lind, William Marchal
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