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Average return on the investment

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Calculate the annual arithmetic and geometric average return on the investment displayed in tab Q3.

Year

Performance

Index

 

 

 

 

 

100

 

Arithmetic average

 

1

12.2%

 

 

 

 

2

8.4%

 

 

Geometric average

 

3

-5.3%

 

 

 

 

4

7.0%

 

 

 

 

5

15.9%

 

 

 

 

6

-2.1%

 

 

 

 

Reference no: EM133169227

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