What is the geometric average rate of return based on the following series of annual returns for XYZ Co?

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What is the geometric average rate of return based on the following series of annual returns for XYZ Co?

 Year    Return
1 18%
2 -3%
3 27%
4 5%
5 -36%
6 14%
7 8%
8 1%

Answer Choices:

  2.46%

 

  3.56%

 

  102.5%

 

  4.0%

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