Your investment portfolio has the following annual returns over the last three years. Year 1: -13%...

Your investment portfolio has the following annual returns over the last three years.

Year 1: -13%

Year 2: 6%

Year 3: 19%

The arithmetic average of these returns is: %

The time-weighted annualized return (i.e. geometric average) of these returns is: %

Please enter your answer with TWO decimal points.

Expert Solution

Year	Return
1	-13%
2	6%
3	9%
Total	2%

The arithmetic average of these returns	=	2%/3
			=	0.67%


The time weighted annual return	=	4%
(19%*/3+6%/3-13%/3)

jeff jeffy answered 2 years ago

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