Answer :
Answer: 0.78%
Step-by-step explanation: The following data represent monthly returns (in percent):-7.24 1.64 3.48 -2.49 9.30 The geometric mean return is the closest to 0.78%.
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The closest value to the geometric mean return is 2.72%.
How to determine the closest value to the geometric mean
To calculate the geometric mean return, we need to multiply all the individual returns together and then take the nth root, where n is the number of returns.
The given returns are:
-7.24, 1.64, 3.48, -2.49, 9.30
To find the geometric mean return, we perform the following calculations:
Geometric mean return = (1 + R1) * (1 + R2) * (1 + R3) * (1 + R4) * (1 + R5)^(1/n) - 1
Geometric mean return = (1 + (-7.24/100)) * (1 + (1.64/100)) * (1 + (3.48/100)) * (1 + (-2.49/100)) * (1 + (9.30/100))^(1/5) - 1
Calculating the expression gives us:
Geometric mean return ≈ 0.0272 or 2.72%
Therefore, the closest value to the geometric mean return is 2.72%.
Learn more about geometric mean at https://brainly.com/question/848391
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