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Question Four (B) The following table shows the NYSE composite index over a recent 15 -year period: a) Ignoring dividends, calculate the simple annual rates
Question Four (B) The following table shows the NYSE composite index over a recent 15 -year period: a) Ignoring dividends, calculate the simple annual rates of return. (2 marks) b) Calculate the arithmetic average of the annual rates of return. (2 marks) c) Calculate the geometric average of the annual rates of return. (2 marks) d) Compare your answers in Parts b and c. How do you account for the difference between these averages? (2 marks)
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