Question
1. Your portfolio has provided you with returns of 7.9 percent, 15.6 percent, -5.1 percent, and 14.1 percent over the past four years, respectively. What
1. Your portfolio has provided you with returns of 7.9 percent, 15.6 percent, -5.1 percent, and 14.1 percent over the past four years, respectively.
What is the geometric average return for this period?
2. Over the past six years, a stock had annual returns of 23 percent, -12 percent, 26 percent, 30 percent, -7 percent, and -5 percent, respectively. Identify the following statistics:
Average return:
Variance: (list with four decimal places)
Standard Deviation:
3. Over the past five years, a stock returned 10.1 percent, -29.8 percent, -3.1 percent, 43.3 percent, and 12.7 percent, respectively.
What is the variance of these returns?
4. One year ago, you purchased 800 shares of stock for $11.50 a share. The stock pays $0.40 a share in dividends each year. Today, you sold your shares for $22.90 a share. What is your total dollar return on this investment?
What is your total percentage return on this investment?
5. One year ago, you bought a stock for $36.88 a share. You received a dividend of $1.78 per share last month and sold the stock today for $41.74 a share.
What is the total return on this investment?
6.
Your brother's portfolio has provided with returns of 7.9 percent, 10.2 percent, 9.7 percent, and 9.8 percent over the past four years, respectively.
What is the geometric average return for this period? %
What is the arithmetic average return for this period? %
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