Question

In: Finance

the price of oman flour mills share went up from 465baisa to 880 bisa in 2016,...

the price of oman flour mills share went up from 465baisa to 880 bisa in 2016, futher went up 910 baisa in 2017 and dropped to 520 in 2018. The best measure of return for a investor investing during this period is

Select one:
a. None of these
b. Variance
c. Geometric Mean
d. Arithmetic Mean
e. Standard deviation

Solutions

Expert Solution

Geometric Mean

This mean will give the most accurate results as it will consider the compounding effect of the share price return each year. This present the most accurate measure of return.


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