An asset has annual returns of 14 percent, 8 percent, - 6 percent, 27 percent and 18 percent. What is the geometric average return?
A) 11.64%
B) 12.20%
C) 13.05%
D) 14.16%
E) 15.25%

Name: An asset has annual returns of 14 percent, 8 percent, - 6 percent, 27 percent and 18 percent. What is the geometric average return? A) 11.64% B) 12.20% C) 13.05% D) 14.16% E) 15.25%
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Question

Quizplus · Accepted Answer

Geometric average return = [(1+0.14)(1+0.08)(1-0.06)(1+0.27)(1+0.18)]^(1/5) - 1 = 11.64%

An Asset Has Annual Returns of 14 Percent, 8 Percent