Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock had returns of 18.00 percent, -6.71 percent, and 23.66 percent for the past three years. a. What was the geometric average return for

image text in transcribed

A stock had returns of 18.00 percent, -6.71 percent, and 23.66 percent for the past three years. a. What was the geometric average return for this stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the arithmetic average return for this stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the variance of the stock's returns? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.) a. Geometric average return = % b. Arithmetic average return = 11.65 % c. Variance =

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

Bitcoin Cash What You Need To Know About Bch

Authors: Alexander O. M.

1st Edition

1976721229, 978-1976721229

More Books

Students also viewed these Finance questions