Determine geometric average return


Problem:

A stock has produced returns of 1.7 percent, 13.5 percent, 5.3 percent, and -8.9 percent over the past four years, respectively.

Required:

Question: What is the geometric average return?

a. 2.43 percent
b. 2.58 percent
c. 2.61 percent
d. 2.75 percent
e. 2.83 percent

Note: Please explain comprehensively and give step by step solution.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Determine geometric average return
Reference No:- TGS0880018

Expected delivery within 24 Hours