Calculate the geometric rate of return for the djia

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Reference no: EM13911999

Refer to Exercise 3.52. The values of the DJIA on the first day of trading in 2005, 2006, and 2007 were 10,729.43, 10,847.41, and 12,474.52.

a. Calculate the geometric rate of return for the DJIA from 2005 to 2010.

b. If an investment of $100,000 is made in 2005 and the portfolio performs with returns equal to those of the DJIA, what is the investment worth in 2010?

Text Book: Business Statics in Practice By BOWERMAN.

Reference no: EM13911999

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