London Arbitrageurs, PLC, employs many analysts who devise and implement trading strategies. Mr. Brown is trying to evaluate three trading strategies that have been used for different periods of time.

Mr. Brown wants to give a prize to the best performer but is somewhat confused by the returns earned over different periods. Annualize returns in all three cases and advise Mr. Brown.

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Keith believes that he can predict share price movements based on earnings announcements. In the last 100 days he has earned a return of 6.2 percent. Thomas has been very successful in predicting daily movements of the Australian dollar and the Japanese yen based on the carry trade. In the last four weeks, he has earned 2 percent after accounting for all transactions costs.