an easy one...

but I am stuck!!! An analyst observes the following four annual returns R1: 10% R2: - 15% R3: 0% R4: 5% The equivalent compound annual rate is???

-0.459% … perhaps ?

pretty close, - 0,5 is the answer steps??

Straightforwad geometric mean: [(1.1 * 0.85 * 1.0 * 1.05) ^ 0.25] -1 = -0.46%

[(1+0.1)(1-0.85)(1+0)(1+0.05)]^0.25 -1 It is called geometric mean. I love your question baby! :slight_smile:

thank you!!! I knew it was the easiest one!!!

Dont you think I’m not paying atention to the formulas, it was just a lapsus jeje

gabrielamdea Wrote: ------------------------------------------------------- > Dont you think I’m not paying atention to the > formulas, it was just a lapsus jeje And now I also know you are spanish…

jaja…yep…I live in Argentina, but my english is pretty good, when I concentrate…and I can laugh also like this haha