Follow Us :

Quantitative Methods Q100

0. A portfolio has the following annual returns: 5%, 11%, -6%, 0%. The geometric mean across the four-year period is closest to:

  • Option : A
  • Explanation : The geometric mean return is calculated as = [(1 + 0.05) × (1 + 0.11) × (1 − 0.06) × (1 + 0.00)]0.25 − 1 = 0.0231 ~ 2.3%
Cancel reply

Your email address will not be published. Required fields are marked *


Cancel reply

Your email address will not be published. Required fields are marked *