a) Arithmetic mean is higher by 1.14%.
b) Both means would be the same, so the difference is zero.
c) Arithmetic mean is 1.14 times greater than geometric mean.
d) Arithmetic mean is lower by 1.14%.
The correct answer is: a)
Arithmetic Mean = (15 + -7 + 6.5 + -11.3 + 32.7)/5 = 7.18%
Geometric Mean =[(1.15 x 0.93 x 1.065 x 0.887 x 1.327)^(1/5)] - 1 = 6.04
Therefore, the arithmetic mean is higher than the geometric mean by 1.14% (7.18 - 6.04)
Free info on financial certification exams including study guides, exam questions, and much more!
The correct answer is d) When the specialist gave the floor broker the quote of “59.20 to 35; 6 by 11,” the quote meant ...
The correct answer is c When the firm is a market maker in the stock then it must act as a principle. Principal is the main ...
The correct answer is c). Early withdrawal from a non-qualified annuity--prior to age 59½, except for death or disability, ...
- No results found.