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Hello! I need help with finding part two of this question. Below is my work for the first part and my answer. Part 2 Using
Hello! I need help with finding part two of this question. Below is my work for the first part and my answer.
Part 2
- Using the information in the previous question, help Charlene to determine the geometric average returns for the stock:
- 3.064
- 2.165
- 6.282
- 2.064
- None of the above
Part 1
- Charlene analyzed a sample of returns of a stock and generated the following data for 6 years. 8%, -9%, -11%, 22%, 7%, -1%. Her analysis resulted in the following for arithmetic average, standard deviation and variance:
- 3.667, 13.3071, 151.4667
- 2.667, 13.3071, 151.4667
- 2.667, 151.4667, 12.3071
- 1.667, 12.3071, 152.4667
- 2.667, 12.3071, 151.4667
Arithmetic Avg. Variance
R1 = 8% *(Sx)^2 = 151.4667
R2 = -9%
R3 = -11% Standard Deviation
R4 = 22% (square root 151.4667)
R5 = 7% = 12.3071
R6 = -1%
+_______________
16%/6 = 2.666667
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