An investor is evaluating the historical performance of an investment fund. The following annual returns are provided
Question:
An investor is evaluating the historical performance of an investment fund. The following annual returns are provided to the investor:
a. Calculate the investment returns for each year.
b. Compute the arithmetic mean return.
c. Calculate the geometric mean return.
d. Why is there a difference between (b) and (c)?
Transcribed Image Text:
Year 0 1 234N 4 5 Fund Value 100 110 120 110 105 100
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Related Book For
ISE Real Estate Finance And Investments
ISBN: 9781264892884
17th International Edition
Authors: Jeffrey Fisher William B. Brueggeman
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