Question
1. Consider the following ex-post holding period returns (HPRs): Year Investment X (%) Investment Y (%) 1 8 12 2 6 -10 3 4 8
1. Consider the following ex-post holding period returns (HPRs):
| Year | Investment X (%) | Investment Y (%) |
| 1 | 8 | 12 |
| 2 | 6 | -10 |
| 3 | 4 | 8 |
| 4 | -2 | 2 |
a. Calculate the arithmetic mean holding period return (HPR) for each investment b. Calculate the geometric mean HPR for each investment
c. Explain why the arithmetic and geometric means are different
d. Calculate the covariance of return between investment X and Y
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The Legal Environment Today Summarized Case Edition
Authors: Roger LeRoy Miller
8th Edition
130526276X, 978-1305279407, 1305279409, 978-1305704930, 1305704932, 978-1305262768
