The Rate of Return for Each of the Past Four

question 15

Short Answer

The rate of return for each of the past four years on a market fund are R₁ = 2.4%, R₂ = 1.0%, R₃ = −3.2%, and R₄ = .5%. Find the geometric mean rate of return.

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Definitions:

Memoranda

Written notes or records used for communication or to aid in remembering information.

Link Method

A mnemonic technique that involves forming a mental image of items to be remembered in a way that links them together.

Structural Encoding

The process of encoding sensory input into memory based primarily on the structure of objects, such as their shape or size, rather than their meaning.

Passive Encoding

The process of absorbing information without actively trying to remember it or giving it full attention.