1. Calculate the monthly return of each financial instrument.?
2. Calculate the arithmetic mean and geometric mean of monthly returns of each financial instrument. Present the arithmetic mean and geometric mean as a table in your report. ?Are the arithmetic and geometric means different? Discuss why and what it means for investors.
3. Calculate standard deviation of returns and discuss the risk of each financial instrument.?
4. Draw histograms of returns of each financial instrument. In Excel you can use?

 

Analyze the histograms in terms of expected return and risk of each financial instrument. ?

 

1. Present the return-risk trade off by drawing an XY graph of average return and standard deviation financial instruments. Describe your findings using the graph.?

Answer rating: 100% (QA)

The arithmetic mean is the calculated average of the middle value of a da... View the full answer