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The table shows the closing vaue (end of year) and returns on the NASDAQ Composite Index from 1998 to 2003. You will note that there

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The table shows the closing vaue (end of year) and returns on the NASDAQ Composite Index from 1998 to 2003. You will note that there was a fair amount of variation in the yearly retums over this period Compute the arithmetic average and the compound average of the retuns over the period from Dec 31 1998 to Dec 31, 2003. Calculate the difference between the arithmetic average and the compound average. Index Return Year 1998 2,192.68 1999 4,069.31 85.59% 2000 2001 2002 247052-3929% 195040-21.05% 1.335.51-31.53% 2003 2.003 37 50.01% The arithmetic average return is %. (Round to two decimal places.)

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