The Stansfield Endowment fund had this performance over the past 4 years 2019 20 00 2018 25 00 2017 36 00 2016 50 00 The true average performance of the fund over the past 4 years (i e the geometric mean return) is closest to The Stansfield Endowment fund had this performance over the past 4 years...

Here are the stepbystep calculations 1 Calculate the annual returns as a percentage increase over the initial value 2019 20 return Convert to a factor 1 020 120 2018 25 return Convert to a factor 1 025 125 2017 36 return Convert to a factor 1 036 064 2016 50 return Convert to a factor 1 050 150 2 Multiply the annual factors to determine the cumulative return over the 4 years 120 125 064 150 18240 3 Take the 4th root of the cumulative return factor to calculate the effective annual compound rate 18240 10352 4 Subtract 1 and convert to a percentage 10352 1 00352 00352 100 352 So the geometric mean annual return ...