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Years of an investment portfolio

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Reference no: EM132193857

Following are the returns  for the  last 5 years of an Investment portfolio:

Year %Return

1 18%

2 -8%

3 12%

4 7.5%

5 13.7%

Based on your calculation the difference between the Arithmatic Mean (AM) and Geometric Mean (GM) is:

First calculate the Arithmetic Mean (AM) and then the Geometric Mean (GM) of the % Return over the last 5 years and then select the appropriate answer:

a.AM-GM = 0.7%

b.AM - GM =0.0%

c.AM-GM = 1.5%

d.AM-GM = 0.4%

Reference no: EM132193857

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