Question: The file Indices contains data that represent the total rate of return percentage for the Dow Jones Industrial Average (DJIA), the Standard & Poor's 500

The file Indices contains data that represent the total rate of return percentage for the Dow Jones Industrial Average (DJIA), the Standard & Poor's 500 (S&P 500), and the technology-heavy NASDAQ Composite (NASDAQ) from 2011 through 2014. These data are:

a. Compute the geometric mean rate of return per year for the DJIA, S&P 500, and NASDAQ from 2011 through 2014.
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).

Year DJIA S&P 500 NASDAQ 2011 12 2013 26.5 0.0 13.4 29.6 11.4 1.8 15.9 38.3 13.4 5.5 7.3 14 7.5

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a b The rate of return of Nasdaq 500 is the best at 1559 follow... View full answer

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