1. Use the data in Table 12.1 to answer the following. Assume you are creating portfolios at the start of 2005 and then selling them at the end of

Can you please explain it i am really confused on how to solve it?????

1. Use the data in Table 12.1 to answer the following. Assume you are creating portfolios at the start of 2005 andthen selling them at the end of 2010 (i.e. they will be held for six years). Calculate the arithmetic and geometricaverage returns for each of the following three portfolios. Assuming you started with $1,000 in each portfolio, whatwill the final value of each portfolio be? (Ignore any taxes.)A. 100% in large company stocksB. 100% in long term government bondsC. 60% in large company stocks & 40% in long term government bonds