Question: Please show work so I can see how the problem is solved! Year 1 2 3 4 5 Return (%) 25 -2 12 16 0
Please show work so I can see how the problem is solved!
Year 1 2 3 4 5 Return (%) 25 -2 12 16 0 a. What is the arithmetic mean return? b. What is the geometric mean return? c. Which would you use if you wanted to see you your stock portfolio has grown over the past 5 years? (Why)? d. Which would you use if you wanted to explain what the typical rate of return on the S&P500 has been during the 10 years from 2010-2020? (Why?)
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