Portfolio Management Q68

0. The IFT Fund has achieved returns of 18%, 15%, and –36% in the past three years, respectively. The fund's geometric mean return for the past three years is closest to:

Answer
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Option : B
Explanation : The geometric mean return for the fund for the past three years is calculated as: [(1 + 18%) (1 + 15%) (1 - 36%)]1/3 - 1 = - 0.0459 = - 4.59%.

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