Your portfolio has provided you with returns of 8.6 percent, 14.2 percent, -3.7

Question

Your portfolio has provided you with returns of 8.6 percent, 14.2 percent, -3.7 percent, and 12.0 percent over the past four years, respectively. What is the geometric average return for this period?

7.25 percent
7.54 percent
7.57 percent
7.63 percent
9.55 percent
You have 5000 characters left Submit Cancel Your portfolio has provided you with returns of 8.6 percent, 14.2 percent, -3.7 percent, and 12.0 percent over the past four years, respectively. What is the geometric average return for this period?

7.25 percent
7.54 percent
7.57 percent
7.63 percent
9.55 percent
You have 5000 characters left Submit Cancel
Submit Cancel

Explanation / Answer

geometric avg return = ((1+8.6%)*(1+14.2%)*(1-3.7%)*(1+12%))^1/4 -1

=0.075437

=7.5437%

=7.54% (appx)

ans:7.54%

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