Consider the performance of two securities, J and K over the five year period from 2000 to 2004. The annual return earned on each one of them is as provided in the table below: Year J K % % 2000 -30.0 6.4 2001 55.9 -21.1 2002 15.7 -10.0 2003 75.9 35.0 2004 5.7 15.6 Required: Compute the following: The Arithmetic Mean returns of both securities over the 5-year holding period. [02 Marks] The Geometric Mean return of both securities over the 5-year holding period. [03 Marks] Assuming your organization had K100 million to invest on 01st January, 2000. If this was invested equally in the two securities, what terminal value would be accumulated after 5 years with annual compounding? [05 Marks] What level of volatility would your investments be exposed to over the holding period for each security? [05 Marks] Evaluate the performance of the securities individually. With hindsight, which security would you have advised management to invest in if it had to choose only one? [05 Marks]