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(52903)   (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?
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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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