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The following are annual rates of return for U . S . government T - bills and U . S . common stocks. U .
The following are annual rates of return for US government Tbills and US common stocks.
US Government US Common
Year TBills Stock
Compute the arithmetic mean rate of return and standard deviation of rates of return for the two series. Do not round intermediate calculations. Round your answers for arithmetic mean to one decimal place. Round your answers for standard deviation of rates of return to two decimal places.
AMTB:
AMCS:
sigma TB:
sigma CS:
Compute the geometric mean rate of return for each of these investments. Do not round intermediate calculations. Round your answers to one decimal place.
GMTB:
GMCS:
Compare the arithmetic mean return and geometric mean return for each investment and discuss the difference between mean returns as related to the standard deviation of each series.
The geometric mean of the US Government TBills is the arithmetic mean, an indicator of a standard deviation.
The geometric mean of the US Common Stocks is the arithmetic mean, an indicator of a standard deviation.
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