Answered

Discover the best answers at Westonci.ca, where experts share their insights and knowledge with you. Experience the convenience of finding accurate answers to your questions from knowledgeable professionals on our platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

Calculate the geometric average return earned by an investor over three years if she earned 6% in the first year of an investment, 12% in the second year and 10% in the third year.

Sagot :

Answer:

8.96%

Explanation:

[tex]\sqrt[\frac{1}{n} ]{x1. x2.x3...}[/tex] = geometric average return

n = number of observations

x1 = observations

(0.06 x 0.12 x 0.1)^(1/3) = 0.0896 = 8.96%

Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.