Question

Suppose that at the beginning of Year 1 you invested $10,000 in the Stivers mutual fund and $5000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table below. Year Stivers Trippi Year 1 $10,900 $5,700 Year 2 $11,800 $6,300 Year 3 $12,800 $7,000 Year 4 $13,900 $7,700 Year 5 $15,000 $8,500 Year 6 $16,000 $9,200 Year 7 $17,100 $9,900 Year 8 $18,400 $10,700 Compute the mean annual return for the Stivers mutual fund and for the Trippi mutual fund. Do not round intermediate calculations. Stivers Trippi Mean annual return (to 3 decimals) Which mutual fund performed better?

Answer 1

Ansuer parhulars Chv t 1 ount n 1 Valu et Invutmut at end of year I 6 p9 10,g00 4 G200 End of yar T 1200 Joo0 nd of 31 12 ,R00 yar nd of yar 1300 BA0O 1 2500 end of yuar 1,000 1200 $ 6,000 End of yuar 1400 11, loo end of yuar foboo Cnd of yar 000 (10,000) Ley Inhalnvested Return omlut ,loo Man Amual retum trive Mf No. of yeurs Invent uu nlg of y Retum tor n p 6300
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Rate of reum Average annal returo Initial investct xtoo For Stivn mF for TriPp mF Rat ot Rati of vetum retum l0000 SO00 L0 S uray Tnppi mutual fund is the Ye turn Trippi is pertommed better Than more