Concerning the geometric mean rates of return per year

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Reference no: EM131990233

The data in the accompanying table represent the total rates of return? (in percentages) for three stock exchanges over the? four-year period from 2009 to 2012. Calculate the geometric mean rate of return for each of the three stock exchanges.

a. Compute the geometric mean rate of return per year for the stock indices from 2009 through 2012.

For stock exchange? A, the geometric mean rate of return for the? four-year period? 2009-2012 was

?(Type an integer or decimal rounded to two decimal places as? needed.)

For stock exchange? B, the geometric mean rate of return for the? four-year period? 2009-2012 was

?(Type an integer or decimal rounded to two decimal places as? needed.)

For stock exchange? C, the geometric mean rate of return for the? four-year period? 2009-2012 was

(Type an integer or decimal rounded to two decimal places as? needed.)

Year A B C

2012 7.89 12.78 15.86

2011 5.68 0.00 -2.05

2010 10.00 13.02 16.87

2009 18.65 23.12 43.35

b. What conclusions can you reach concerning the geometric mean rates of return per year of the three market? indices?

A. Stock exchange B had a higher return than exchange C and a much higher return than exchange A.

B. Stock exchange C had a much higher return than exchanges A or B.

C. Stock exchange A had a higher return than exchange C and a much higher return than exchange B.

D. Stock exchange A had a much higher return than exchanges B or C.

c. Compare the results of? (b) to those of the results of the precious metals. Choose the correct answer below.

A. Silver had a worse return than stock index? C, but a better return than indices A and B. Gold had a better return than index? B, but a worse return than indices A and C. Platinum had a worse return than all three stock indices.

B. Silver had a much higher return than any of the three stock indices. Both gold and platinum had a worse return than stock index? C, but a better return than indices A and B.

C. All three stock indices had higher returns than any of the precious metals.

D. All three stock indices had lower returns than any of the precious metals.

Reference no: EM131990233

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