Year. 1 2 3 4
Business, 07.03.2020 01:01, bskyeb14579
Consider an investment with the returns over 4 years as shownhere:
Year. 1 2 3 4
16% 11% 10% 10%
a. What is the compound annual growth rate (CAGR) for this investment over the 4 years?
b. What is the average annual return of the investment over the 4 years?
c. Which is a better measure of the investment's pastperformance? If the investment's returns are independent and identically distributed, which is a better measure of theinvestment's expected return next year?
Answers: 3
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Consider an investment with the returns over 4 years as shownhere:
Year. 1 2 3 4
Year. 1 2 3 4
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