INVESTMENT MANAGEMENT (WIUC) Practice Questions 1. Use the table below to answer the questions given Year Return on steck A % 1 2 3 4 5 7 8 -12 5 12 Return on stock B % 30 10 16 -10 -6 a Calculate the arithmetic average retum on the two stocks over the 5-year period 2 marks b. Calculate the geometric average retum of cach stock marks c.Calculate the standard deviation of returns of stock A only 4 marks 2. Consider the following ex-post HPRS: Year Investment A/9) Investment BC%) 1 10 14 2 15 -10 3 8 30 a. Calculate the arithmetic mean HPR for cach investment b. Calculate the geometric mean HPR for each investment c. Explain why the arithmetic and geometric means are different 3. Assume the rate of return given below are for two stocks listed on the Ghana Stock Exchange (GSE). Year Return on stock A Return on stock B 1 2 3 4 5 02 0.10 0.14 0.05 0.01 03 0.1 0.18 0.00 -0.08