Geometric average return = [(1 + R1)(1 + R2)(1 + R3)]^1/n - 1
Geometric average return = [(1 + 0.15)(1 + 0.15)(1 + 0.05)]^1/3 - 1
Geometric average return = [1.15 * 1.15 * 1.03]^1/3 - 1
Geometric average return = 1.1157 - 1
Geometric average return = 0.1157 or 11.57%
This Question: 1 pt 22 of 24 (0 complete) Suppose that a stock gave a realized...
Suppose that a stock gave a realized retum of 20% over a two-year time period and a 10% retum over the third year. The geometric average annual return is: O A. 14.08% OB. 16.57% O c. 12.43% OD. 8.28%
11.2-10 Question Help Amazon.com stock prices gave a realized return of 5%, -5%, 10%, and -10% over four successive quarters. What is the annual realized return for Amazon.com for the year? O A. 2.5% O B. - 1.25% O C. 1.25% OD. 0.00%
Amazon.com stock prices gave a realized return of 15%, 15%, -15%, and-15% over four successive quarters. for the year? What is the annual realized return for Amazon.com OA. O B. O c. -445% -7.12% -5.12% D. 0%
4. Suppose that a stock gave a realized return of 20% over a two-year time period and a 10% return over the third year. The geometric average annual return is ________. (2 points) A) 8.28% B) 12.43% C) 14.08% D) 16.57% 5. Bear Stearns' stock price closed at $98, $103, $58, $29, $4 over five successive weeks. The weekly standard deviation of the stock price calculated from this sample is ________. (2 points) A) $30.07 B) $49.40 C) $42.96 D)...
Amazon.com stock prices gave a realized return of 5%,-596, 996, and-9% over four successive quarters. What is the annual realized return for Amazon.com for the year? A. B. OC. D. 1.06% 0.00% 2.12% -1.06%
Score: 0.33 of 1 pt 3 of 16 (15 complete) VB 11-12 (book/static) Ten annual returns are listed in the following table: 16.6% 18.0 % -19.9% 50.0 % 1.2 % -16.5 % 43.3% 45.6% 45.2% -3.0% a. What is the arithmetic average return over the 10-year period? b. What is the geometric average return over the 10-year period? c. If you invested $100 at the beginning, how much would you have at the end? a. What is the arithmetic average...
(Calculating the geometric and arithmetic average rate of return) The common stock of the Brangus Cattle Company had the following end-of-year stock prices over the last five years and paid no cash dividends: Time Brangus cattle Comapny $15 11 24 28 a. Calculate the annual rate of return for each year from the above information b. What is the arithmetic average rate of return earned by investing in Brangus Cattle Company's stock over this period? c. What is the geometric...
This Question: 1 pt 10 of 22 (0 complete) This Test: 22 pts por (Band valuation) Calculate the value of a bond that will mature in 12 years and has a $1,000 face value. The annual coupon interest rate is 16 percent, and the investor's required rate of return is 15 percent. The value of the bond is $ . (Round to the nearest cent.)
This Question: 1 pt 21 of 24 (18 complete) This Test: 30 pts possible Suppose the government starts with a debt of $0. Then in year 1, there is a deficit of $100 billion, in year 2 there is a deficit of $60 billion in year 3 there is a surplus of $40 billion and in year 4 there is a deficit of $20 billion What is government debt at the end of year 4? OA. $140 billion O B...
which of the following statements is false? A. The realized return is the total return we earn from dividends and capital gains, expressed as a percentage of the initial stock price. B. The expected return is the return that actually occurs over a particular time period. C. The average annual return of an investment during some historical period is simply the average of the realized returns for each year. D. If you hold the stock beyond the date of the...