Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

A stock had returns of 11.63 percent (1 year ago), -33.51 percent (2 years ago), X (3 years ago), and 23.8 percent (4 years ago)

A stock had returns of 11.63 percent (1 year ago), -33.51 percent (2 years ago), X (3 years ago), and 23.8 percent (4 years ago) in each of the past 4 years. Over the past 4 years, the arithmetic average annual return for the stock was 9 percent. What was the geometric average annual return for the stock over the past 4 years? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting 2007 FASB Update Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

12th Edition

9780470128763

Students also viewed these Finance questions