Suppose at the beginning of 2006 you decide to invest $1,000 in Vanguard's European Stock Index mutual fund. The following table shows the returns for the years 2006-2009.
Year Annual Return
2006..............................33.42%
2007..............................13.82%
2008............................-44.73%
2009..............................31.91%
a. Calculate and interpret the arithmetic mean return.
b. Calculate and interpret the geometric mean return.
c. How much money would you have accumulated by the end of 2009?