An investment has had returns of 15 percent, 10 percent, -16 percent, and 27 percent over the last four years. What is the geometric average return of this investment over the last four years? A. 76.88% B. 7.78% C. 34.95% D. 9%

An investment has had returns of 15 percent, 10 percent, -16 percent, and 27 percent over the last four years. What is the geometric average return of this investment over the last four years? A. 76.88% B. 7.78% C. 34.95% D. 9%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 8P

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Question

An investment has had returns of 15 percent, 10 percent, -16 percent, and 27 percent over the last four years. What is the geometric average return of this investment over the last four years?

	A.	76.88%
	B.	7.78%
	C.	34.95%
	D.	9%

Formula Formula ROI (%) = Net Income Principal Amount × 100

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