Suppose the rate of return for a particular stock during the past two years was 15%...

Question

Question

Suppose the rate of return for a particular stock during the past two years was 15% and 50%. Compute the geometric mean rate of return.

(Note: A rate of return of 15% is recorded as 0.15, and a rate of return of 50% is recorded as 0.50.) The geometric mean rate of return is _____%.

Answer 1

Answer #1

Here the geometric mean will be =sqrt(50*15)=27.386 will be the value of geometric mean

Answer 2

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