Average holding period return

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Reference no: EM132053195

The returns for the Goldigova Syndicate over the last 4 years are given below.

A) Assuming no dividends were paid, what was the 5-year “AVERAGE” holding period return (geometric return)?

Year 1 return = 11%

Year 2 return = - 6%

Year 3 return = - 4%

Year 4 return = 7.5%

Year 5 return = 3.2%

B) What is the average (arithmetic) return?

Reference no: EM132053195

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