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I only need part C The follawing information is available concerning the historical risk and return relationships in the U.s. capital markets: U.S. CAPITAL MARKETS
I only need part C
The follawing information is available concerning the historical risk and return relationships in the U.s. capital markets: U.S. CAPITAL MARKETS TOTAL ANNUAL RETURN5, 1990-2015 of Return" Investment Category Common stocks Treasury bills Long-terI government bonds Long-term corporate bonds Real estate Based on arithmetic mean Mean Mean 10.12% 4.24 4.80 5.20 9.49 8.80% 4.21 4.53 4.98 9.46 18.036 9.5 a. Explain why the geometric and arlthmetic mean returns are not equal and whether one or the other may be more useful for Investment decision making The arithmetic average assumes the r b. For he tine period indicated, rank these investments on a relative basis using the coelTicient of variation from most to least desirable. Do not round intermediate calculations. Round your answers to two decimal places while the geametric average assumes campnunding or interest an interast Rank coefficient of variation, % 50.58 75.47 Investment Category 150 194.62 C. Assume the arithmetic mean returns in these series are normally distributed. Calculate the range of returns that an investor would have expected to achieve 95 percent of the time from holding lang-term government bonds. Do not round intermediate calculations Round your answers to two dedimal places, Use a minus sign to enter negative values, if any Arithmelic: from %toStep by Step Solution
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