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 2009 through 2012. 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 2009 through 2012.
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).

NASDAQ Year 2012 2011 2010 2009 Source: Data extracted from finance.vahoo.com, March 29, 2013. DJIA 7.26 5.50 11.00 18.80 S&P 500 13.41 0.00 12.80 23.50 15.91 16.90 43.90

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a Year DJIA SP 500 Nasdaq 2012 726 1341 1591 2011 55 0 18 2010 11 128 169 2009 188 235 ... View full answer

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