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Lecture 10 Return and Risk
Rates of Return ,[object Object],[object Object],[object Object],[object Object]
Rates of Return ,[object Object],[object Object],[object Object],[object Object],[object Object]
Arithmetic Average ,[object Object],[object Object],Period 1 10% Period 2 25% Period 3 -20% Sum 15%
Geometric Average ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Problem with Arithmetic average ,[object Object],[object Object],[object Object],[object Object],Year Begin value Ending value HPR 2007 50 100 100% 2008 100 50 -50%
Geometric Vs Arithmetic ,[object Object],[object Object]

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Risk and Return