Unformatted text preview: this number +std deviation Grand parents invested 1000 In 1925 and how much worth in 2006 Average rate of return compounds R=(FV/PV) *1/t -1 Arithemtic return add up divide by 6 typical yr Geometric return [(1+R1) (1+R2)……….(1+R’T)] 1/T -1 longer rate...
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- Spring '10
- Finance, deviation Grand parents, -1 Arithemtic return, yr Geometric return