Answer:
Geometric return = 13.043%
Explanation:
This is compounded annual rate of return which is used to measure the performance of an asset over a certain number of years. It helps to measure the return generated by an investment taking into account the volatility .
Unlike the arithmetic average the geometric average gives an idea of the real rate taking into account of volatility
The formula below
Geometric Return =(1+r1) (1+r2) ...... (1+rn)^1/n
Geometric Average return =
( 1.42× 1.117× 1.034 × 0.972× 1.158) ^1/5 -1 = .13043
Geometric return =0. 1304× 100= 13.043
Geometric return = 13.043%
