MATH

MATH

ÿÿYou have now read about capital market efficiency and methods used to analyze it. These concepts are very important to corporations. They are also helpful to individual investors, especially as these concepts pertain to finding ways to mitigate risk in individual investments or within a portfolio. It is also important to understand the differences between average returns, arithmetic returns, and geometric returns. Finally, understanding risk premiums is important to understand to know why different investments offer varying rates of return.ÿFor this Discussion, read this weeks resources. Put special emphasis on the various financial terms discussed in the resource.ÿ, a 200- to 250-word ÿexplanation ofaverage returns, arithmetic vs. geometric averages, and risk premiums. Also, explain how the average investor could benefit by knowing these concepts in order to assume the least amount of risk.ÿBe sure to support your work with specific citations from the Learning Resources and any additional sources.ÿ a selection of your colleagues’ postings.ÿ to or more of your colleagues’ postings in one or more of the following ways:ÿÿ to this Discussion in a few days to read the responses to your initial posting. Note what you learned and the insights you gained from the comments your colleagues made.:ÿ Refer to the Discussion Template in this weeks Learning Resources for your main post and responseÿÿThis page contains the Learning Resources for this week. Be sure to scroll down the page to see all of this week’s assigned Learning Resources.ÿÿÿ


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