Ten annual returns are listed in the following table 19.9% 16.6% - 50.0% a. What is the arithmetic average return over the 10-year period? b. What is the geometric average return over the 10-year period? c. If you invested $100 at the beginning, how much would you have at the end? 18.0% (Click on the following icon in order to copy its contents into a spreadsheet) 1.2% -16.5% 45.6% 45.2% 43.3% -3.0%

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 20EA: Towson Industries is considering an investment of $256,950 that is expected to generate returns of...
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Ten annual returns are listed in the following table (Click on the following icon in order to copy its contents into a spreadsheet.)
19.9%
18.0%
1.2%
- 16.5%
45.6%
16.6%
a. What is the arithmetic average return over the 10-year period?
b. What is the geometric average return over the 10-year period?
c. If you invested $100 at the beginning, how much would you have at the end?
50.0%
43.3%
a. What is the arithmetic average return over the 10-year period?
The arithmetic average return over the 10-year period is% (Round to two decimal places.)
45.2%
-3.0%
Transcribed Image Text:Ten annual returns are listed in the following table (Click on the following icon in order to copy its contents into a spreadsheet.) 19.9% 18.0% 1.2% - 16.5% 45.6% 16.6% a. What is the arithmetic average return over the 10-year period? b. What is the geometric average return over the 10-year period? c. If you invested $100 at the beginning, how much would you have at the end? 50.0% 43.3% a. What is the arithmetic average return over the 10-year period? The arithmetic average return over the 10-year period is% (Round to two decimal places.) 45.2% -3.0%
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