Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock had returns of 17.83 percent (1 year ago), -25.94 percent (2 years ago), X (3 years ago), and 22.3 percent (4 years ago)

A stock had returns of 17.83 percent (1 year ago), -25.94 percent (2 years ago), X (3 years ago), and 22.3 percent (4 years ago) in each of the past 4 years. Over the past 4 years, the geometric average annual return for the stock was 5.44 percent. What was the arithmetic 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 to Expert-Tailored 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

Forecasting And Predictive Analytics With Forecast X

Authors: Barry Keating, J. Holton Wilson, John Solutions Inc.

7th International Edition

1260085236, 9781260085235

More Books

Students also viewed these Finance questions