The series of returns of a single investment are presented as follows; Beginning value 100 115.0 138.0 Year 1 2 3 End value 115.0 138.0 110.4 i. compute the Arithmetic mean of the investment. ii. calculate the Geometric mean of the investment. iii. With an appropriate illustration argue which one of the two measures issupeno

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The series of returns of a single investment are presented as follows;
Beginning value
100
115.0
138.0
Year
1
2
3
End value
115.0
138.0
110.4
i.
compute the Arithmetic mean of the investment.
ii.
calculate the Geometric mean of the investment.
iii. With an appropriate illustration argue which one of the two measures issupe
Transcribed Image Text:The series of returns of a single investment are presented as follows; Beginning value 100 115.0 138.0 Year 1 2 3 End value 115.0 138.0 110.4 i. compute the Arithmetic mean of the investment. ii. calculate the Geometric mean of the investment. iii. With an appropriate illustration argue which one of the two measures issupe
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