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1. A stock index has recorded the following values at the end of each month from December 2019 to April 2020 and no dividend is
1. A stock index has recorded the following values at the end of each month from December 2019 to April 2020 and no dividend is assumed.
December
2478.0
January
2505.3
February
2491.7
March
2482.4
April
2508.9
a) Calculate the monthly holding period returns (HPR).
b) Calculate the arithmetic mean of the monthly returns.
c) Calculate the geometric mean of the monthly returns.
d) Using the geometric mean of the monthly returns in part (c), estimate the nominal annual return (APR) and effective annual return (EAR) on the index.
13. A stock index has recorded the following values at the end of each month from December 2019 to April 2020 and no dividend is assumed. a) Calculate the monthly holding period retums (HPR). b) Calculate the arithmetic mean of the monthly returns. c) Calculate the geometric mean of the monthly returns. d) Using the geometric mean of the monthly returns in part (c), estimate the nominal annual return (APR) and effective annual return (EAR) on the index
1. A stock index has recorded the following values at the end of each month from December 2019 to April 2020 and no dividend is assumed.
December | 2478.0 |
January | 2505.3 |
February | 2491.7 |
March | 2482.4 |
April | 2508.9 |
a) Calculate the monthly holding period returns (HPR).
b) Calculate the arithmetic mean of the monthly returns.
c) Calculate the geometric mean of the monthly returns.
d) Using the geometric mean of the monthly returns in part (c), estimate the nominal annual return (APR) and effective annual return (EAR) on the index.
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