Question

Green stock returned 6 percent, -8 percent, 14 percent, and 16 percent over the past four...

Green stock returned 6 percent, -8 percent, 14 percent, and 16 percent over the past four years, respectively. What is the arithmetic average return for this period?

6.11 percent

7.00 percent

10.19 percent

12.42 percent

A stock has an average return of 12.5 percent and a standard deviation of 4.3 percent. What range of returns would you expect to see 99 percent of the time on this security?

-4.7 percent to 29.7 percent

-0.4 percent to 25.4 percent

8.2 percent to 16.8 percent

3.9 percent to 21.1 percent

0 0
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Answer #1

Dear student, only one question is allowed at a time. I am answering the first question

Arithmetic average return

= Sum of observations / Number of observations

= ( 6% - 8% + 14% + 16%) / 4

= 28% / 4

= 7%

So, as per above calculations, option B is the correct option

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