Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock has had returns of 8 percent, 26 percent, 14 percent, -17 percent, 31 percent, and -1 percent over the last six years. What

image text in transcribed
image text in transcribed
image text in transcribed
A stock has had returns of 8 percent, 26 percent, 14 percent, -17 percent, 31 percent, and -1 percent over the last six years. What are the arithmetic and geometric average returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g. 32.16.) Arithmetic average return Geometric average retum ces Calculate the geometric average return for the returns in the following table SAP Returns 10.25 37.80 45.07 (8.10) (2016) Calculate the geomet average return for the returns in the following table Returns 18.25 37.80 45.7 ( 10) (20.16)

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

Investing From Scratch A Handbook For The Young Investor

Authors: James Lowell

1st Edition

014303684X, 978-0143036845

More Books

Students also viewed these Finance questions