Q7.4. What is the annualized holding rate of return and the average rate of return for each

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Q7.4. What is the annualized holding rate of return and the average rate of return for each of the following? 1. An asset that returns 5% each year. 2. An asset that returns 0% and 10% in alternate years. 3. An asset that returns -10% and 20% in alternate years. Is the distance between the two returns larger when there is more risk?

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