A stock investment generated the following annual (total) returns over these 3 years: • 2015: 20% • 2016: 10% ⚫ 2017: -50% What was the geometric average return over the 3 year Period? (Answer to the nearest 0.01%)

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
Section: Chapter Questions
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A stock investment generated the following annual (total) returns over these 3
years:
• 2015: 20%
B
2016: 10%
2017: -50%
What was the geometric average return over the 3 year Seriod?
(Answer to the nearest 0.01%)
Transcribed Image Text:A stock investment generated the following annual (total) returns over these 3 years: • 2015: 20% B 2016: 10% 2017: -50% What was the geometric average return over the 3 year Seriod? (Answer to the nearest 0.01%)
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