Each month for the past several years, you have collected the monthly returns to an index of large-cap value stocks and an index of large-cap growth stocks. For the last two years, for both of the indexes you have converted these monthly returns into a series ofrolling average annualized returnsby taking an average of the previous 12 monthly returns and multiplying that average by 12. These rolling average annualized returns are shown below for each index over the past 24 months.

MonthValue Index Annualized

Return (%)Growth Index Annualized

1. Return (%)19.86%8.54%216.9516.87325.3428.81416.7817.53518.3115.99619.1816.29719.2613.21817.6710.08918.6711.991021.2616.341128.0422.591222.7417.671326.9521.631421.7316.101521.7918.701625.1825.081725.5426.421826.1129.051917.4422.042022.9223.482123.6321.572215.1818.362316.6320.222425.6122.64For both the value and growth indexes, calculate the arithmetic mean of the 24 monthly average annualized returns. Which index appears to have outperformed the other over this period? Explain. Do not round intermediate calculations. Round your answers to two decimal places.
2. The Value Index:%
3. The Growth Index:%
4. The-Select-from [Growth Index and Value Index] appears to have outperformed the-Select- from [Growth Index and Value Index] over the 24-month period by%.
5. For each month in this sample period, compute the difference in annualized returns between the value index and the growth index (Rvalue-Rgrowth). Calculate the average of this return differential series and compare it to your answers from part (a). Do not round intermediate calculations. Round your answers to two decimal places. Negative values, if any, should be indicated by a minus sign. If your answer is zero, enter 0.

MonthRvalue-Rgrowth1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% Average%

The average of the return in the differential series is-Select- from[less than more than and the same as] the difference in the arithmetic means.