SOLUTION: . The return on investment earned by Atkins Construction Company for four successive years was: 30 percent, 20 percent, 40 percent, and 200 percent. What is the geometric mean ra

Question 1190734: . The return on investment earned by Atkins Construction Company for four successive years
was: 30 percent, 20 percent, 40 percent, and 200 percent. What is the geometric mean rate of
return on investment?
Answer by ikleyn(52910) (Show Source): You can put this solution on YOUR website!
.
The return on investment earned by Atkins Construction Company for four successive years
was: 30 percent, 20 percent, 40 percent, and 200 percent. What is the geometric mean rate of
return on investment?
~~~~~~~~~~~~~~~~~~~~

The multiplicative growth coefficients in successive four years are 1.3, 1.2, 1.4 and 3.


The geometric mean multiplicative growth coefficient in four years is, therefore, 


     =  = 1.5999, or  1.6  (rounded).


It means that geometric mean rate of return is 60% per year.    ANSWER

Solved.

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