Explain how a percentage return is calculated and describe the calculation of an arithmetic average return.
Answer to relevant QuestionsDescribe how the variance and standard deviation are calculated and indicate how they are used as measures of risk. Explain what is meant by “market efficiency.” What are the characteristics of an efficient market? Describe what happens to portfolio risk as more and more assets are added to a portfolio. Are there advantages to international diversification? RCMP, Inc. shares rose 10 percent in value last year while the inflation rate was 3.5 percent. What was the real return on the stock? If an investor sold the stock after one year and paid taxes on the investment at a 15 ...Using the data in Table, calculate and interpret the coefficient of variation for each asset class.
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