Question
The following are annual rates of return for U.S. government T-bills and U.K. common stocks. Year U.S Government T-Bills U.K Government Common Stock Year US
The following are annual rates of return for U.S. government T-bills and U.K. common stocks. Year U.S Government T-Bills U.K Government Common Stock
Year US Govt T-bills UK Common Stock
2012 0.063 0.150
2013 0.081 0.043
2014 0.076 0.374
2015 0.090 0.192
2016 0.085 0.106
a. Compute the arithmetic mean rate of return and standard deviation of rates of return for the two series.
b. Discuss these two alternative investments in terms of their arithmetic average rates of return and their absolute risk and their relative risk.
c. Compute the geometric mean rate of return for each of these investments.
d. Compare the arithmetic mean return and geometric mean return for each investment and discuss this difference between mean returns as related to the standard deviation of each series.
Pls show calculation in Excel thx!
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