Question: Consider an investment held over five years with a return of +10% in the first year, +3% in the second year, -5% in the third

Consider an investment held over five years with a return of +10% in the first year, +3% in the second year, -5% in the third year, +1% in the fourth year, and +2% in the third year. What is the geometric mean return on the investment?

A. +2.09%

B. +2.20%

C. +4.15%

D. +5.00%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!