Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock had returns of 3 1 . 4 0 % ( 1 year ago ) , 1 2 . 6 0 % ( 2

A stock had returns of 31.40%(1 year ago),12.60%(2 years ago), X (3 years ago), and 8.70%(4 years ago) in each of the past 4 years. Over the past 4 years, the geometric average annual return for the stock was 9.23%. What was the arithmetic average annual return for the stock over the past 4 years? Answer in decimal format, rounded to the nearest hundredth of a percent (for example, 1.23% would be entered as 0.0123).

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_2

Step: 3

blur-text-image_3

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

Multinational Business Finance

Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett

12th Edition

0136096689, 978-0136096689

More Books

Students also viewed these Finance questions

Question

How would a workshop be useful?

Answered: 1 week ago

Question

=+d) Interpret the coefficient of the dummy variable named Q3.

Answered: 1 week ago

Question

which of the statements about interfaces is not true

Answered: 1 week ago