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Only A Please help. Will thumbs up. 10. The annual returns on the stock of a firm during the last four years are provided below.
Only A
Please help. Will thumbs up.
10. The annual returns on the stock of a firm during the last four years are provided below. Year Return 2016 2017 2018 2019 -0.10 (or - 10%) 0.10 (or 10%) 0.15 (or 15%) 0.25 (or 25%) a) Find the holding period return of the stock over the four-year period. b) Compute the arithmetic average return of the stock over the four-year period. c) Calculate the geometric average return of the stock over the four-year period. d) Calculate the variance and standard deviation of the returns during this period. Use the arithmetic average return in (b) for your calculations in (d). Use at least 5 decimal places for the variance computation to avoid rounding errorsStep by Step Solution
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