Question: Please Answer This Question a. Explain why the geometric and arithmetic mesn returns are not equal and whether one or the other may be more
a. Explain why the geometric and arithmetic mesn returns are not equal and whether one or the other may be more useful for investment decision making. The arithmetic average assumes while the geometric average assumes b. For the time perlod indicated, rank these investments on a relative basis using the coefficient of variation from most to least desicable Do not round intermediate calculations. Round your answers to two decimal places, c. Assume the arithmetic mean returns in these series are nomally distrouted. Calculate the range of retarns that an investor would have expected to achieve 95 percent of the time from hoiding long-term corporate bonds. Do not round intermediate calculations. Round your answers to two decimal places. Use o minus sign to enter negative values, if any. Arithmetici from
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