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A mutual fund has a rate of return for five years of 10%, 14%, 10%, and 22% . Calculate the geometric mean. Round to the nearest tenth of a percent.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A mutual fund has a rate of return for five years of 10%, 14%, 10%, and 22% . Calculate the geometric mean. Round to the nearest tenth of a percent.

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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