Highlight Answers

A stock had returns of 19.00 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. If the average risk-free rate was 2.58 percent. What was the risk premium for this stock during this 3-year period? (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g. 3216.) d. 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 - % c. Risk Premuim d. Variance