Question

Your portfolio has provided you with returns of 8.6 percent, 14.2 percent, -3.7 percent, and 12.0 percent over the past four years, respectively. what is the geometric average return for this period?

Answer 1

First you have to add all four of your numbers, 8.6+14.2+ -3.7+ 12=31.1. Then you divide your answer by 4, the number of numbers you added, and you get your answer of 7.775.