1. Based on a study of U.S. capital markets for the 1900-2000 period, the geometric average returns on U.S. Treasury bills, government bonds, and common stocks are 4.0%, 5.2%, and 11.7%, respectively. Suppose $1,000 was invested at the beginning of 1900 in the each of the three securities. Please calculate the value of each investment by the end of 2000. [Note: There are 101 years during the 1900-2000 period.]

2. We have the following information for the XYZ stock:

              Year          Annual Return

              2014             10%

              2015             -15%

              2016             15%

              2017          20%

a. Calculate the arithmetic average annual return.

b. Calculate the geometric average annual return.

c. Calculate the standard deviation of the returns.

d. If $1000 is invested in the stock at the start of 2014, how much will it become by year-end 2017?

3. An investor invested $1000 in a mutual fund at the start of 2009. At year-end 2017, this investment grew to $3500. How much is the geometric annual return during this holding period?