Question

The Investment Research Institute reported in its Mutual Fund Fact Book that the number of mutual funds increased from 5,700 in 1999 to 8,064 in 2009. What is the geometric mean annual percent increase in the number of funds

Answer 1

The geometric mean is 6833.049

The value of fund in 1999 is 5,700

value of fund in 2009 is 8,064

We need to find the geometric mean annual percent increase in the number of funds.

The geometric mean is the average of a set of products,  it is defined as the compounding effect of the numbers in the series in which the numbers are multiplied by taking nth root of the multiplication.

The calculation of which is commonly used to determine the performance results of an investment or portfolio.

We know, The Geometric mean is = $\sqrt[n]{x_1*x_2*...*x_n}$

substituting values:

$\\ GM = (5790*8064)^{0.5} = 6833.049$

Formula used:

Geometric mean is = $\sqrt[n]{x_1*x_2*...*x_n}$

To know more about Geometric mean visit:

brainly.com/question/47038

#SPJ4