What is the geometric average return of Kamal's investment?
A)3.38%
B)4.63%
C)6.96%
D)8.78%

Name: What is the geometric average return of Kamal's investment? A)3.38% B)4.63% C)6.96% D)8.78%
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Quizplus · Accepted Answer

The geometric average return is calculated by taking the nth root of the product of (1 + r1) * (1 + r2) * ... * (1 + rn), where r1, r2, ..., rn are the returns in each period. In this case, the returns are 5%, 10%, and 15%, so the geometric average return is (1 + 0.05) * (1 + 0.10) * (1 + 0.15) = 1.338, or 3.38%.

What Is the Geometric Average Return of Kamal's Investment