Question: 1. (20 points) Refer to the table below. The table below shows the annual returns (in percentages) for 2 major market indices. For each index,

1. (20 points) Refer to the table below. The table below shows the annual returns (in percentages) for 2 major market indices. For each index, calculate the arithmetic mean return and the geometric mean return of full-year returns from 2005-2015. What is the relationship between the arithmetic and geometric mean returns?

	2015	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005
Nasdaq CompositeIndex	1.37	8.59	50.0	-31.5	-21.1	-39.3	85.6	39.6	21.6	22.7	39.9
Dow Jones Industrial Average	-0.61	3.15	25.3	-16.8	-7.1	-6.2	25.2	16.1	22.6	26.0	33.5

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