What is the geometric average return over 1 year if the quarterly returns are 8%, 9%, 5%, and 12%?
A. 8%
B. 8.33 %
C. 8.47%
D. 8.5 %
Answer: C. 8.47%
Return = (1.05 × 1.08 × 1.09 × 1.12).25 - 1 = .0847
What is the geometric average return over 1 year if the quarterly returns are 8%, 9%, 5%, and 12%?
A. 8%
B. 8.33 %
C. 8.47%
D. 8.5 %
Answer: C. 8.47%
Return = (1.05 × 1.08 × 1.09 × 1.12).25 - 1 = .0847