The Investment Research Institute reported in its Mutual Fund Fact Book that the number of mutual funds increased from 5,725 in 1999 to 7,977 in 2009. What is the geometric mean annual percent increase in the number of funds?
A)1.034
B)3.37
C)39.34
D)71.11
E)633.5

Question

Quizplus · Accepted Answer

The geometric mean annual percent increase can be calculated using the formula:

[(ending value / beginning value)^(1/number of years) - 1] x 100%

Plugging in the given values, we get:

[(7,977 / 5,725)^(1/10) - 1] x 100% ≈ 3.37

Therefore, the answer is B) 3.37.

The Investment Research Institute Reported in Its Mutual Fund Fact