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Market Value of the Portfolio

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1. A portfolio of nondividend-paying stocks earned a geometric mean return of 5.0% between January 1, 1998, and December 31, 2004. The arithmetic mean return for the same period was 6.0%. If the market value of the portfolio at the beginning of 1998 was $100,000, what was the market value of the portfolio at the end of 2004?

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Solution Summary

The market value of portfolio has been calculated given the mean return.

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1. A portfolio of nondividend-paying stocks earned a geometric mean return of 5.0%
between January 1, 1998, and December 31, 2004. The arithmetic mean return for the
same period was ...

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