Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Consider the rate of return of stocks ABC and XYZ. Year r ABC r XYZ 1 18 % 30 % 2 11 10 3 14
Consider the rate of return of stocks ABC and XYZ.
Year | rABC | rXYZ | |||||||||
1 | 18 | % | 30 | % | |||||||
2 | 11 | 10 | |||||||||
3 | 14 | 17 | |||||||||
4 | 4 | 0 | |||||||||
5 | 3 | 7 | |||||||||
Calculate the geometric average returns of each stock. What do you conclude? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started