Suppose you make a 2-year investment of $5,000 and it grows by 100% to $10,000 during the first year. During the second year, however, the investment suffers a 50% loss, from $10,000 back to $5,000. Calculate the geometric mean. a 0 % b 25% c 45% d 15%

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Suppose you make a 2-year investment of $5,000 and it grows by 100% to $10,000 during the first year. During the second year, however, the investment suffers a 50% loss, from $10,000 back to $5,000.

Calculate the geometric mean.

a 0 %

b 25%

c 45%

d 15% 

 

 

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