Find the 5-year average annual compound rates of return for


1. Unit values in a mutual fund have experienced annual growth rates of 10%, 16%, -7%, 4%, and 32% in the past five years. The fund manager suggests the fund can advertise an average annual growth of 11% over the past five years. What is the actual average annual compound growth rate over the past five years?

2. A mutual fund advertises that average annual compound rate of returns for various periods ending December 31, 2015 are as follows:

10 years -13%; 5 years - 17%; 2 years - 15%; 1 year - 22%.

Find the 5-year average annual compound rates of return for the period January 1, 2006 to December 31, 2010, and find the annual rate of return for calendar year 2014.

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Financial Management: Find the 5-year average annual compound rates of return for
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