Please show how to solve in excel and the formulas to 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%

Please show how to solve in excel and the formulas to 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%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 8P

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