Question

In: Finance

You started your investment with an opening deposit of $1,000.  Your portfolio grew as follows: Beg Yr...

  1. You started your investment with an opening deposit of $1,000.  Your portfolio grew as follows:

Beg Yr 1

Beg Yr 2

Beg Yr 3

Beg Yr 4

Beg Yr 5

Beg Yr 6

Beg Yr 7

Beg Yr 8

Beg Yr 9

Beg Yr 10

End Yr 10

$1,000

$1,268

$1,426

$1,497

$1,579

$995

$1,258

$1,447

$1,478

$1,714

$2,270

  1. Calculate the average return and geometric return for eachyear.  
  2. What is the arithmetic average of your returns?

What is your long-term geometric average?  (the average at end of year 10

please show me how you calculated using excel

Solutions

Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -


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