Returns for Small Stocks Consider if the Great Depression had happened from 1989 to 2000 and the returns from 1989...
jessan 1Returns for Small Stocks
Consider if the Great Depression had happened from 1989 to 2000 and the returns from 1989 to 2000 had occurred from 1929 to 1940 instead. Taking the returns for the small stocks:
a. How would the arithmetic average return over the whole 1926– 2006 period have changed, if at all?
b. How would the geometric average return over the whole 1926– 2006 period have changed, if at all?
c. How would the total amount that the $100 would have grown to changed, if at all?
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