The following information is available concerning the historical risk and return relationships in the U.S. capital markets: U.S. CAPITAL MARKETS TOTAL ANNUAL RETURNS, 1990-2015 Arithmetic Geometric Standard Deviation Investment Category Mean Mean of Return Common stacks 10.90% 9.15% 18.5% Treasury bills 3.58 3.52 2.5 Long-term government bonds 5.65 5.47 6.4 Long-term corporate bonds 5.80 5.58 9.6 Real estate 10.33 10.30 3.9 "Based on arithmetic mean. a. Explain why the geometric and arithmetic mean returns are not equal and whether one or the other may be more useful for investment decision making. The arithmetic average assumes -Select- , while the geometric average assumes -Select- b. For the time period indicated, rank these investments on a relative basis using the coefficient of variation from most to least desirable. Do not round intermediate calculations. Round your answers to two decimal places. Rank Investment Category Coefficient of variation, 1 1 2 -Select- 3 -Select 4 -Select- 5 1-Select C. Assume the arithmetic mean returns in these series are normally distributed. Calculate the range of returns that an investor would have expected to achieve 95 percent of the time from holding real estate. Do not round intermediate calculations. Round your answers to two decimal places. Use a minus sign to enter negative values, if any. Arithmetics from % to 96 The following information is available concerning the historical risk and return relationships in the U.S. capital markets: U.S. CAPITAL MARKETS TOTAL ANNUAL RETURNS, 1990-2015 Arithmetic Geometric Standard Deviation Investment Category Mean Mean of Return Common stocks 10.90% 9.15% 18.5% Treasury bills 3.58 3.52 2.5 Long-term government bonds 5.65 5.47 6.4 Long-term corporate bonds 5.80 5.58 9.6 Real estate 10.33 10.30 3.9 Based on arithmetic mean a. Explain why the geometric and arithmetic mean returns are not equal and whether one or the other may be more useful for investment decision making. The arithmetic average assumes -Select- , while the geometric average assumes Select b. For the time period indicated, rank these investments on a relative basis using the coefficient of variation from most to least desirable. Do not found intermediate calculations. Round your answers to two decimal places Investment Category Coefficient of variation, Select Rank 1 2 3 4 Common Stocks ould have expected to achieve 95 percent of the time from holding real estate. Do not round intermediate cal 5 Long term corporate bonde C. Assume the arithmetic mean returns in these series are normally distributed. Calculate the range Long-term government bonds Round your answers to two decimal places. Use a minus sign to enter negative values, if any. Reslestate Arithmetic: from % to % Treasury bile