Use the following to answer the following question(s).
Roddy Richards invested $12014.88 in Wolverine Meat Distributors (W.M.D.) five years ago. The investment had yearly arithmetic returns of -9.7%, -8.1%, 15%, 7.2%, and 15.4%.
What is the arithmetic average return of Roddy Richard's investment?
A) 2.42%
B) 3.96%
C) 5.18%
D) 15.1%
What is the geometric average return of Roddy's Richard's investment?
A) 3.38%
B) 4.63%
C) 6.96%
D) 8.78%
How much money did Roddy Richards receive when he sold his shares of W.M.D.?
A) $12,014.88
B) $12,398.42
C) $13,663.47
D) $14,184.73
Marcus Berger invested $9842.33 in Hawkeyehats, Inc. four years ago. He sold the stock today for $11,396.22. What is his geometric average return?
A) 2.98%
B) 3.73%
C) 3.95%
D) There is insufficient information to derive an answer.
Michael Lynch invested $10,000 in the Rearguard Fund four years ago. All earnings were reinvested in the fund. If his compound annual rate of return was 7%, what is his investment worth today?
A) $1,310.80
B) $10,700
C) $12,800
D) $762.89
