Part B, where does 0.6133% come from?
I can’t figure that one out either. Tried geometric & arithmetic, both come up with something different. Anyone else?
I’m getting .6345% geometrically, and I’m on Excel, so I’d call it close enough.
I got it - you geometrically link the twelve months of returns, which gets you to 1.076135. I then divided that by 12, which gave me my .006345. That was wrong. What I should’ve done, and just did, was instead take the twelfth root of that number - when I did this, I got .0061333.
Agreed! I can replicate it as well.
Ah, raise it to the 1/n. That is odd to do that and then multiply by 12…isn’t it more accurate to geo. link each of the 12 sub periods?