Hi, I have this question in my finance class and I can't seem to get the correct answer.
"Compute the geometric average of the following rates of return: 10%, -20%, -10%, and 20%"
I multiplied (.1*.2*-.1*-.2)=.0004 and took the 4th root of that and got 0.141421
Apparently, the correct answer is -1.26%.
Can someone tell me where I went wrong? Thanks
