The spreadsheet below contains the total returns for the S&P 500 Index for the years 2000-2009 in decimal form. This 10-year period has been called the " Lost Decade."

Year Return

2000 0.9088

2001 0.8812

2002 0.7791

2003 1.2867

2004 1.1087

2005 1.0491

2006 1.1574

2007 1.0549

2008 0.63

2009 1.2646

a. Calculate the average annual total return (geometric mean) for this index for this 10-year period. Interpret your result.

b. What was the cumulative wealth on December 31, 2009, per dollar invested on January 1, 2000?

c. What was the cumulative wealth on December 31, 2002, per dollar invested on January 1, 2000?

d. Given a $100 investment in the S&P 500 Index on January 1, 2000, in what year did this investment finally break above $100