INVESTMENT MANAGEMENT (WIUC) Practice Questions 1. Use the table below to answer the questions given Year Return on stock A% Return on stock 8% 8 1 2 3 4 5 30 10 16 -10 -6 5 12 a Calculate the arithmetic average return on the two stocks over the yea period b. Calculate the geometric average return of each stock marks c.Calculate the standard deviation of retums of stock A only as 2. Consider the following ex-post HPRE Year Investment A Investment B 1 10 14 15 -10 8 30 a Calculate the arithmetic mean HPR for each 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 1 02 03 2 0.10 0.1 3 0.14 015 0.05 0.30 5 0.01 -0.0 4 a Calculate the arithmetic average return on the two stocks over the 5-year period 1. Which of the two stocks has a greater dispersion around the mean? Calculate the geometric average returns of each stock INVESTMENT MANAGEMENT (WIUC) Practice Questions 1. Use the table below to answer the questions given Year Return on stock A% Return on stock 8% 8 1 2 3 4 5 30 10 16 -10 -6 5 12 a Calculate the arithmetic average return on the two stocks over the yea period b. Calculate the geometric average return of each stock marks c.Calculate the standard deviation of retums of stock A only as 2. Consider the following ex-post HPRE Year Investment A Investment B 1 10 14 15 -10 8 30 a Calculate the arithmetic mean HPR for each 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 1 02 03 2 0.10 0.1 3 0.14 015 0.05 0.30 5 0.01 -0.0 4 a Calculate the arithmetic average return on the two stocks over the 5-year period 1. Which of the two stocks has a greater dispersion around the mean? Calculate the geometric average returns of each stock