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

The file Indices contains data that represent the yearly rate of return (in percentage) for the Dow Jones Industrial Average (DJIA), the Standard & Poor's 500 (S&P 500), and the technology-heavy NASDAQ Composite (NASDAQ) from 2008 through 2011. These data are:
The file Indices contains data that represent the yearly rate

a. Compute the geometric mean rate of return per year for the DJIA, S&P 500, and NASDAQ from 2008 through 2011.
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 5.5 -0.0 2010 11.0 12.8 16.9 2009 18.8 23.5 43.9 2008 33.8 38.5 -40.5

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a b The rate of return of SP 500 is the worst at 379 followed by DJIA at 204 a... View full answer

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