Q1. Risk and Return Big Rock is listed on the local stock exchange and its stock has had mixed performance over the last few months. The companys directors are interested in seeing how Big Rocks performance compares to other companies in the sector.

Company Initial Investment Value End of Year 1 Value End of Year 2 Value End of Year 3

Big Rock Building Inc. $1,000 $1,268 $1,334 $1,105

Required: Calculate the arithmetic mean and the geometric mean over the three-year period for the investments made.

Required: Calculate the arithmetic mean and the geometric mean over the three-year period for the investments made. [