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Year Return 1 9% 2 11% 3 -4% 4 7% 5 6% A) What is the geometric average? What is the arithmetic average? B) Assume

Year Return

1 9%

2 11%

3 -4%

4 7%

5 6%

A) What is the geometric average? What is the arithmetic average?

B) Assume that the distribution is normal. Using the standard error, calculate the 95.4 percent confidence interval for the true return.

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