Hi there,

Just would like to ask the following question.

Background:

You are invited by the University of Melbourne to manage part of the University's endowment. Your group, as a portfolio manager, is given $100,000 to invest in different asset classes in DM and EMs.

Assume today is August 31, 2018. For your analysis consider the time series of returns since inception and address the following questions

(data is provided by lecturer for 8 different asset classes over the period 1994 - 2018)

Question:Should the geometric means or the arithmetic means be used when evaluating the asset classes by the mean/variance criterion?

Thanks!