Asked by gaile

please answer:a portfolio had an original value of $8500 eight years ag.the current value of the portfolio is $45389.what is the average geometric return on this portfolio?

urgent response need please

Answers

Answered by Reiny
not sure what you mean by "average geometric return", do you want the average compound interest rate?
if so...

45389 = 8500(1+i)^8
5.3398824 = (1+i)^8
1+i = 1.23938
i = .23938 = 23.938%
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