Calculate and interpret the geometric mean return

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Reference no: EM131460182

Question: Suppose at the beginning of 2006 you decide to invest $1,000 in Vanguard's European Stock Index mutual fund. The following table shows the returns for the years 2006-2009.

849_Return 1.png

a. Calculate and interpret the arithmetic mean return.

b. Calculate and interpret the geometric mean return.

c. How much money would you have accumulated by the end of 2009?

Reference no: EM131460182

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