Return on Panama Railhro ad Company Stock (%) -1% Year 1853 1854 -9% 1855 19% 1856 2% 1857 3% 1858 36% 1859 21% 1860 16% 1861 -5% 1862 43% 1863 44% 1864 48% 1865 7% 1866 11% 1867 23% 1868 20% 1869...

The Panama Railroad Company was established in 1850 to construct a railroad across the isthmus that would allow fast and easy access between the Atlantic and Pacific oceans. The following table (The Big Ditch, Mauer and Yu, 2011) provides annual returns for the stock from 1853 through 1880.

Using geometric mean for part b

Extracted text: Return on Panama Railhro ad Company Stock (%) -1% Year 1853 1854 -9% 1855 19% 1856 2% 1857 3% 1858 36% 1859 21% 1860 16% 1861 -5% 1862 43% 1863 44% 1864 48% 1865 7% 1866 11% 1867 23% 1868 20% 1869 -11% 1870 -51% 1871 42% 1872 39% 1873 42% 1874 12% 1875 26% 1876 9% 1877 -6% 1878 25% 1879 31% 1880 30%


Extracted text: Can you tell from the graph if the Panama Railroad Company stock outperformed the New York Stock Exchange? Yes b. Calculate the mean annual return on Panama Railroad Company stock from 1853 through 1880. Round your answer to one decimal place. Did the stock outperform the New York Stock Exchange over the same period? No