Question

A trader triples his money in year one. However, he runs into trouble in year two and loses 73%

Approximately what is his annual geometric mean return over this period?

-10% |
||

63.5 |
||

113.5 |
||

-17% |
||

-20% |

Answer #2

**Answer**

**Option a) -10%**

Reason:

Formula for calculating Annual Geometric Mean Return =

Thus, putting the values in the above formula:

=

=

=

=

=

**Thus, Annual Geometric Mean Return is equal to
-10%**

answered by: anonymous

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Year
Conquistador
Alpaca
2012
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3.00%
2013
6.00%
12.00%
2014
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19.00%
2015
6.00%
-7.00%
2016
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4.00%
Alpaca’s latest report to investors
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