问题详情

TrinaRomel,mutualfundmanager,istakingoverapoor-performingfundfromacolleague.Romelwantstocalculatethereturnontheportfolio.Overthelastfiveyears,thefund’sannualpercentagereturnswere:25,15,12,-8,and–14.Determineifthegeometricreturnofthefundwillbelessthanorgreaterthanthearithmeticreturnandcalculatethefund’sgeometricreturn:
GeometricReturnGeometriccomparedtoArithmetic
A)4.96%greaterthan
B)12.86%greaterthan
C)12.86%lessthan
D)4.96%lessthan