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Solved: The Data In The Accompanying Table Represent The Total Rates Of Return (in Percentages) For Three Stock Exchanges Over The Four-year Period From 2009 To 2012. Calculate The Geometric Mean Rate

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The data in the accompanying table represent the total rates of return (in percentages) for three stock exchanges over the fo



The data in the accompanying table represent the total rates of return (in percentages) for three stock exchanges over the four-year period from 2009 to 2012. Calculate the geometric mean rate of return for each of the three stock exchanges. Click the icon to view data table for total rate of return for stock market indices - X Data table for total rate of retum Click the icon to view data table for total rate of retum r platinum, gold, and silver. a. Compute the geometric mean rate of return per year for the stock indices from 2009 through 2012. B Year A. C For stock exchange A, the geometric mean rate of return for the four-year period 2009-2012 was 8 19 12.54 15 97 2012 (Type an integer or decimal rounded to two decimal places as needed) 11 81 16.31 2010 12.00 For stock exchange B, the geometric mean rate of return for the four-year period 2009.2012 was 23.65 43.82 2009 18.77 (Type an integer or decimal rounded to two decimal places as needed) X For stock exchange C, the geometric mean rate of return for the four-year pericd 2009-2012 was % Geometric mean rate of return for stack market indices (Type an integer or decimal rounded to two decimal places as needed) b. What conclusions can you reach concerning the geometric mean rates of return per year of the three market indices? Geometric mean rate of return Metal Stock exchange had a much higher return than exchanges B or C Platinum 14.71 % B Stock exchange A had a higher retun than exchangee C and a much higher return than exchange B 15 49% Gold C. Stock exchange B had a higher retun than exchange C and a much higher return than exchange A 21.73% Silver O D. Stock exchange C had a much higher return than exchanges A or B. c. Compare the results of (b) to those of the results of the precious metals. Choose the correct answer below. Print Done All three stock indices had lower returns than any of the precious metals. O A B. Silver had a worse return than stock index C, but a better return than indices A and B. Gold had a better return than index B, but a worse return than indices A and C. Platinum had a worse return than three stock indices c. All three stock indices had higher returns than any of the precious metals. D. Silver had a much hiaher return than anv of the three stock indices, Both aold and platinum had a worse retum than stock index C but a better return than indices A and F

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For stock exchange A geometric mean = {[1 + 8.19%] [1 + 5.56%] [1 + 12%] [1 + 18.77%]}^1/4-1 = 1.112-1 = 0.112 = 1

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