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CFA Level 1
Portfolio Management

Calculation of Geometric Mean Return

Very Easy Performance Evaluation Return Calculation

An investor has a portfolio that generated the following returns over four consecutive years:

  • Year 1: 10%
  • Year 2: -5%
  • Year 3: 15%
  • Year 4: 5%

The investor wants to calculate the geometric mean return of the portfolio over the four-year period.

Hint

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% Correct75%