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Question 5 (25%) (Portfolio return performance) Consider the rate of return of 2 portfolios: Stable Fund and Aggressive Fund. Year Stable Fund annual return %

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Question 5 (25%) (Portfolio return performance) Consider the rate of return of 2 portfolios: Stable Fund and Aggressive Fund. Year Stable Fund annual return % 20 Aggressive Fund annual return % 30 1 2 12 12 3 14 18 4 3 0 5 1 -10 a) (5%) Calculate the arithmetic average return on these portfolios over the sample period. b) (10%) Which portfolio has greater dispersion around the mean return? c) (10%) Calculate the geometric average returns of each portfolio. What do you conclude

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