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The table below shows the performance of Fidelity Magellan Fund (FMAGX) and SPDR S&P 500 ETF Trust (SPY) for each full calendar year over the

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The table below shows the performance of Fidelity Magellan Fund (FMAGX) and SPDR S&P 500 ETF Trust (SPY) for each full calendar year over the period 2008-2013. (a) Calculate the geometric average rate of return (annual: %) for both FMAGX and SPY. (b) If the initial investment at the beginning of 2008 was $10,000, what was the market value of the investment ($) in FMAGX at the end of 2013? Calculate the 6-year return (%). (c) If the initial investment at the beginning of 2008 was $10,000, what was the market value of the investment ($) in SPY at the end of 2013 ? Calculate the whole-period return (%). (d) Which investment yields better performance over the whole period 2008-2013? (e) In part (a), calculate the performance differential (%) between FMAGX and SPY using SPY as benchmark. (f) In parts (b) and (c), calculate the performance differential (%) between FMAGX and SPY using SPY as benchmark

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