The return observation half way down from the top is 23%.
The modeof a data set is the value of the observation that appears most frequently.
Example:In the following set of numbers, 30%, 28%, 25%, 23%, 28%, 15%, and 5%, 28%is the most frequently occurring value.
j: Distinguish between arithmetic mean and geometric means.
The value for the arithmetic mean is higher. The geometric mean will always be less than or equal to the arithmetic mean. In general, the difference between the two means increases with the variability between period-by-period observations. The only time when the two means will be equal is when there is no variability in the observations (e.g., all observations are 10%).
k: Define, calculate, and interpret (1) a portfolio return as a weighted mean, (2) a weighted average or mean, (3) a range and mean absolute deviation, and (4) a sample and a population variance and standard deviation.
Refer to LOS 1.B.ifor a review of weighted mean and weighted average.
Rangeis the distance between the largest and the smallest value in the data set.
Example:The five-year annualized total returns for five investme