The Amada fund contains the three stocks listed below. The fund is comprised of 40% Canyon, 40% Zara, and 20% Junio.

a) Calculate the yearly returns of the portfolio, as well as its arithmetic and geometric average.

b) Assume you invested at the beginning of 2016, and sold at the end 2019 (so there was a four year holding period). Ignore all taxes. If you put $20,000 in this portfolio at the beginning of 2016, what was the value at the end of 2019? Show the steps of your work.

Canyon Zara Junio

2016 20% 10% 15%

2017 -10% 8% -8%

2018 -4% 2% -2%

2019 15% 12% 10%