Return on investment - average return ii

Calculus Level 3

Suppose you have an investment, worth S ( t ) S(t) , which has the following returns, over a five day period: r t = { + 100 % , − 50 % , + 60 % , + 20 % , − 40 % } r_t = \{+100\%, -50\%,+60\%,+20\%,-40\%\}

What is your average daily return (as a percentage) for the 5 day period?


The answer is 18.

Josh Silverman by Josh Silverman

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1 solution

Scott Teger
May 18, 2014

simple average of the 5 numbers

0 Helpful 0 Interesting 0 Brilliant 0 Confused

isnt the return on next day is total amount left fromm previous day????????????????

Navneet Mundhra - 7 years ago

Wrong Solution. It will be 23 accounting for the continuity in returns.

Peeyush Jain - 7 years ago

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