In 2009, all the major stock market indices increased dramatically as they recovered from the world financial

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In 2009, all the major stock market indices increased dramatically as they recovered from the world financial crisis that occurred in 2008. The data in the following table (stored in Indices) represent the total rate of return (in percentage) for the Dow Jones Industrial Average (DJIA), the Standard & Poor's 500 (S&P 500), and the technologyheavy NASDAQ Composite (NASDAQ) from 2006 through 2009.
In 2009, all the major stock market indices increased dramatically

a. Compute the geometric mean rate of return per year for the DJIA, S&P 500, and NASDAQ from 2006 through 2009.
b. What conclusions can you reach concerning the geometric mean rates of return per year of the three market indices?
c. Compare the results of (b) to those of Problem 3.22 (b).

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Basic Business Statistics Concepts And Applications

ISBN: 9780132168380

12th Edition

Authors: Mark L. Berenson, David M. Levine, Timothy C. Krehbiel

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