Calculate the annual arithmetic and geometric average return on the investment using the following variables Year, Performance, Index (Index is 100 for years 1 - 6) Year 1: 11.1% Year 2: 8.4% Year 3: 7.6% Year 4: -2.0% Year 5: 12.6% Year 6: -2.1%
Calculate the annual arithmetic and geometric average return on the investment using the following variables Year, Performance, Index (Index is 100 for years 1 - 6) Year 1: 11.1% Year 2: 8.4% Year 3: 7.6% Year 4: -2.0% Year 5: 12.6% Year 6: -2.1%
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 8P
Question
Calculate the annual arithmetic and geometric average return on the investment using the following variables
Year, Performance, Index (Index is 100 for years 1 - 6)
Year 1: 11.1%
Year 2: 8.4%
Year 3: 7.6%
Year 4: -2.0%
Year 5: 12.6%
Year 6: -2.1%
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