Marcus Berger invested $9842.33 in Hawkeyehats,Inc.four years ago.He sold the stock today for $11,396.22.What is his geometric average return?
A)2.98%
B)3.73%
C)3.95%
D)There is insufficient information to derive an answer.

Question

Quizplus · Accepted Answer

The geometric average return can be calculated using the formula: [(Ending Value/Beginning Value)^(1/n)] - 1, where n is the number of years. Plugging in the values: [(11396.22/9842.33)^(1/4)] - 1 = 0.0373 or 3.73%.

Marcus Berger Invested $9842