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Example 1 (4 points) Suppose that you are told that an investment of $1,000 earned a 100 percent return one year, and that the proceeds

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Example 1 (4 points) Suppose that you are told that an investment of $1,000 earned a 100 percent return one year, and that the proceeds (i.e., principal and interest) were reinvested in the same asset the next year, earning a 50 percent return and resulting in a cash value at the end of the two years of $3,000. A. Calculate the arithmetic average B. Calculate the geometric average C. Show me how we arrive at the cash value of $3,000 Example 2 (8 points) Year ending June 1 Return (%) 2005 249.82 2004 17.04 2003 -11.01 2002 13.35 2001 5.43 Historic returns from Jones Industries Calculate the arithmetic average and the sample standard deviation

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