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16. Consider the following five monthly returns Date Stock Dividend Price Jan 1 50.00 Mar 31 51.00 .55 Jun 30 49.47 .55 Sep 30 51.94
16. Consider the following five monthly returns Date Stock Dividend Price Jan 1 50.00 Mar 31 51.00 .55 Jun 30 49.47 .55 Sep 30 51.94 .75 Dec 31 52.46 .75 a. Calculate the arithmetic average monthly return over this period. b. Calculate the geometric average monthly return over this period. c. Calculate the monthly variance over this period. d. Calculate the monthly standard deviation over this period. 17. Explain the difference between the arithmetic average return you calculated in problem 16 A and the geometric average return you calculated in problem 16 B. Are both numbers useful? If so, explain why. 16. Consider the following five monthly returns Date Stock Dividend Price Jan 1 50.00 Mar 31 51.00 .55 Jun 30 49.47 .55 Sep 30 51.94 .75 Dec 31 52.46 .75 a. Calculate the arithmetic average monthly return over this period. b. Calculate the geometric average monthly return over this period. c. Calculate the monthly variance over this period. d. Calculate the monthly standard deviation over this period. 17. Explain the difference between the arithmetic average return you calculated in problem 16 A and the geometric average return you calculated in problem 16 B. Are both numbers useful? If so, explain why
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