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Between 1st January 2010 and 31st December 2014 you invested in a portfolio whose Arithmetic (AM)...

Between 1st January 2010 and 31st December 2014 you invested in a portfolio whose Arithmetic (AM) and Geometric Means (GM) was 8 and 6 percent respectively. If the beginning market value of the portfolio was $100 000 on 1st January 2010 calculate the market value at the portfolio maturity on 31st December 2014.

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Beginning Value = $ 100000, Geometric Mean(Return) = 6 %, Investment Tenure = 31st Dec 2014 - 1st Jan 2010 = 5 years

Market Value of Portfolio = 100000 x [(1.06)^(5)] = $ 133822.558 ~ $ 133822.56

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