Use the geometric mean, not the arithmetic mean in calculating the average return. Perform analysis for all
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Use the geometric mean, not the arithmetic mean in calculating the average return.
Perform analysis for all relevant variables, unless the assets / series are specified.
1. Using the total returns, calculate the total return index for all investment assets using a base value of 1,000 with a starting date of December 2010 I
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1 Assessment 2 P Date Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 2 3 4 5 6 7 8 9 10 Aug-10 11 Sep-10 Oct-10 Nov-10 Dec-10 15 Jan-11 16 Feb-11 17 Mar-11 18 Apr-11 12 13 14 38 39 40 41 42 19 20 21 22 23 24 25 Nov-11 26 Dec-11 27 Jan-12 28 Feb-12 29 Mar-12 30 Apr-12 31 May-12 32 Jun-12 33 Jul-12 34 Aug-12 35 Sep-12 36 Oct-12 37 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 43 44 45 46 *********** May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 A-REITs 0.47% 2.42% 0.65% -0.05% -2.45% -1.49% -4.68% -1.93% -5.90% 7.19% -3.63% -1.33% 4.98% 1.37% 1.37% 1.44% -6.54% 1.25% 4.66% 2.05% 2.00% 2.94% 0.53% 3.46% 5.02% 5.89% -2.31% 5.12% -4.83% -1.97% 4.88% 2.34% Mainstream asset classes Shares Bonds 2.37% 3.35% -1.95% 0.30% -0.02% -0.77% -6.45% 2.89% -4.58% 3.78% 2.65% -2.55% 5.40% 2.25% -0.59% 5.42% -1.24% 4.34% 5.55% -0.13% 1.20% 5.32% -1.28% 2.86% 4.41% 3.53% -2.58% 8.16% -3.66% -0.97% -0.70% -0.07% 0.07% 0.71% 0.87% 1.09% 1.91% 0.21% 3.23% 3.22% 2.21% -1.92% 3.79% 1.97% -0.80% -0.49% 0.66% 3.24% 6.23% -0.61% 0.74% 0.56% 1.64% -0.80% -0.25% -0.78% -1.37% 1.18% -0.42% 3.27% -1.59% -3.52% 0.74% -1.18% Cash 0.41% 0.37% 0.41% 0.40% 0.41% 0.40% 0.41% 0.41% 0.39% 0.40% 0.39% 0.39% 0.39% 0.36% 0.39% 0.37% 0.38% 0.35% 0.34% 0.33% 0.32% 0.32% 0.30% 0.29% 0.28% 0.24% 0.26% 0.25% 0.26% 0.24% 0.24% 0.23% Unlisted Property Funds 0.47% 0.60% 1.15% 0.55% 0.38% 1.25% 0.50% 0.40% 1.07% 0.69% 0.28% 1.49% 0.54% 0.66% 1.05% 0.44% 0.23% 1.04% 0.48% 0.61% 0.41% 0.46% 0.57% 1.04% 0.53% 0.51% 0.94% 0.41% 0.54% 1.42% 0.40% 0.59% Non-listed property funds Office Funds Retail Funds Industrial Funds 0.40% 0.62% 0.81% 0.51% 0.41% 1.24% 0.59% 0.45% 0.78% 0.61% 0.24% 1.22% 0.49% 0.56% 1.59% 0.36% 0.27% 0.93% 0.50% 0.45% 0.55% 0.42% 0.50% 0.97% 0.55% 0.52% 1.03% 0.33% 0.64% 1.34% 0.32% 0.61% 0.54% 0.65% 1.26% 0.48% 0.14% 1.12% 0.57% 0.53% 1.21% 0.79% 0.38% 1.86% 0.42% 0.54% 0.94% 0.39% 0.33% 0.37% 0.45% 0.53% 0.37% 0.39% 0.50% 1.83% 0.52% 0.50% 0.86% 0.37% 0.53% 1.06% 0.43% 0.63% 0.31% 0.70% 0.80% 0.69% 0.02% 1.30% 0.15% -0.28% 0.64% 1.22% -0.75% 2.33% 0.88% 1.20% 0.57% 0.44% -0.70% 1.98% 0.45% 1.05% -0.46% 0.52% 1.12% 0.41% 0.69% 0.57% 0.97% 1.40% 0.73% 0.97% 0.61% 0.65% Inflation 0.43% 0.47% 0.47% 0.31% 0.31% 0.32% 0.09% 0.09% 0.10% 0.09% 0.09% 0.09% 0.06% 0.02% 0.02% 0.18% 0.18% 0.18% 0.38% 0.37% 0.36% 0.15% 0.15% 0.15% 0.16% 0.14% 0.14% 0.12% 0.12% 0.12% 0.30% 0.29% Base Value (with the starting value of 1000) 1 Assessment 2 P Date Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 2 3 4 5 6 7 8 9 10 Aug-10 11 Sep-10 Oct-10 Nov-10 Dec-10 15 Jan-11 16 Feb-11 17 Mar-11 18 Apr-11 12 13 14 38 39 40 41 42 19 20 21 22 23 24 25 Nov-11 26 Dec-11 27 Jan-12 28 Feb-12 29 Mar-12 30 Apr-12 31 May-12 32 Jun-12 33 Jul-12 34 Aug-12 35 Sep-12 36 Oct-12 37 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 43 44 45 46 *********** May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 A-REITs 0.47% 2.42% 0.65% -0.05% -2.45% -1.49% -4.68% -1.93% -5.90% 7.19% -3.63% -1.33% 4.98% 1.37% 1.37% 1.44% -6.54% 1.25% 4.66% 2.05% 2.00% 2.94% 0.53% 3.46% 5.02% 5.89% -2.31% 5.12% -4.83% -1.97% 4.88% 2.34% Mainstream asset classes Shares Bonds 2.37% 3.35% -1.95% 0.30% -0.02% -0.77% -6.45% 2.89% -4.58% 3.78% 2.65% -2.55% 5.40% 2.25% -0.59% 5.42% -1.24% 4.34% 5.55% -0.13% 1.20% 5.32% -1.28% 2.86% 4.41% 3.53% -2.58% 8.16% -3.66% -0.97% -0.70% -0.07% 0.07% 0.71% 0.87% 1.09% 1.91% 0.21% 3.23% 3.22% 2.21% -1.92% 3.79% 1.97% -0.80% -0.49% 0.66% 3.24% 6.23% -0.61% 0.74% 0.56% 1.64% -0.80% -0.25% -0.78% -1.37% 1.18% -0.42% 3.27% -1.59% -3.52% 0.74% -1.18% Cash 0.41% 0.37% 0.41% 0.40% 0.41% 0.40% 0.41% 0.41% 0.39% 0.40% 0.39% 0.39% 0.39% 0.36% 0.39% 0.37% 0.38% 0.35% 0.34% 0.33% 0.32% 0.32% 0.30% 0.29% 0.28% 0.24% 0.26% 0.25% 0.26% 0.24% 0.24% 0.23% Unlisted Property Funds 0.47% 0.60% 1.15% 0.55% 0.38% 1.25% 0.50% 0.40% 1.07% 0.69% 0.28% 1.49% 0.54% 0.66% 1.05% 0.44% 0.23% 1.04% 0.48% 0.61% 0.41% 0.46% 0.57% 1.04% 0.53% 0.51% 0.94% 0.41% 0.54% 1.42% 0.40% 0.59% Non-listed property funds Office Funds Retail Funds Industrial Funds 0.40% 0.62% 0.81% 0.51% 0.41% 1.24% 0.59% 0.45% 0.78% 0.61% 0.24% 1.22% 0.49% 0.56% 1.59% 0.36% 0.27% 0.93% 0.50% 0.45% 0.55% 0.42% 0.50% 0.97% 0.55% 0.52% 1.03% 0.33% 0.64% 1.34% 0.32% 0.61% 0.54% 0.65% 1.26% 0.48% 0.14% 1.12% 0.57% 0.53% 1.21% 0.79% 0.38% 1.86% 0.42% 0.54% 0.94% 0.39% 0.33% 0.37% 0.45% 0.53% 0.37% 0.39% 0.50% 1.83% 0.52% 0.50% 0.86% 0.37% 0.53% 1.06% 0.43% 0.63% 0.31% 0.70% 0.80% 0.69% 0.02% 1.30% 0.15% -0.28% 0.64% 1.22% -0.75% 2.33% 0.88% 1.20% 0.57% 0.44% -0.70% 1.98% 0.45% 1.05% -0.46% 0.52% 1.12% 0.41% 0.69% 0.57% 0.97% 1.40% 0.73% 0.97% 0.61% 0.65% Inflation 0.43% 0.47% 0.47% 0.31% 0.31% 0.32% 0.09% 0.09% 0.10% 0.09% 0.09% 0.09% 0.06% 0.02% 0.02% 0.18% 0.18% 0.18% 0.38% 0.37% 0.36% 0.15% 0.15% 0.15% 0.16% 0.14% 0.14% 0.12% 0.12% 0.12% 0.30% 0.29% Base Value (with the starting value of 1000)
Expert Answer:
Answer rating: 100% (QA)
Calculating the Total Return Index with Geometric Mean Gather Total Returns Youll need the total return data for each investment asset over the period from December 2010 to the present date April 5 20... View the full answer
Related Book For
Investment Analysis and Portfolio Management
ISBN: 978-0538482387
10th Edition
Authors: Frank K. Reilly, Keith C. Brown
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