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Year U.S. Gov’t T-Bills U.K. Common Stocks 2015 0.063 0.150 2016 0.081 0.043 2017 0.076 0.374 2018 0.090 0.192 2019 0.085 0.106 a. Compute the geometric mean rate of return for each of these investments and compare the arithmetic mean return and geometric mean return for each investment and discuss the difference between mean returns as related to the standard deviation of each series.

Year U.S. Gov’t T-Bills U.K. Common Stocks 2015 0.063 0.150 2016 0.081 0.043 2017 0.076 0.374 2018 0.090 0.192 2019 0.085 0.106 a. Compute the geometric mean rate of return for each of these investments and compare the arithmetic mean return and geometric mean return for each investment and discuss the difference between mean returns as related to the standard deviation of each series.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Year

U.S. Gov’t T-Bills

U.K. Common Stocks

2015

0.063

0.150

2016

0.081

0.043

2017

0.076

0.374

2018

0.090

0.192

2019

0.085

0.106

a. Compute the geometric mean rate of return for each of these investments and compare the arithmetic mean return and geometric mean return for each investment and discuss the difference between mean returns as related to the standard deviation of each series.

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