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Ten annual returns are listed in the following table: (Click on the following icon in...

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Finance

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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.) - 19.3% 16.8% 18.2% - 49.4% 43.6% 1.8% - 16.1% 45.9% 45.1% -3.6% 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? a. What is the arithmetic average return over the 10-year period? The arithmetic average return over the 10-year period is 8.3 %. (Round to two decimal places.) b. What is the geometric average return over the 10-year period? To find the geometric average return, use the following formulas First find the future value of investing $1 today, using the following formula: FV=$1*((1+R4) *(1+R2) ***** (1+RT)) Then use the following formula and solve for R: FV = $1 x (1 + r) 10 The geometric average return, R, over the 10-year period is 3%. (Round to four decimal places.)

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