1.
=((1+12%)*(1+18%)*(1-14%)*(1+7%))^(1/4)-1=5.01360430970368%
2.
=(12%+18%-14%+7%)/4=5.75%
3.
=30%*12%+30%*18%+20%*(-14%)+20%*7%=7.60%
Problem 2 (10 marks). In the past four years, the annual returns of one company's stock...
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2. Michael has an investment with the following annual returns the past four years: Year 1 12% Year 2 -5% Year 3 8% Year 4 18% What is the arithmetic average return over this four year period? 3. Using the annual returns given in problem 2, What is the geometric return over this four year period?
A stock produced total returns of 15%, 12%, 20%, and -36% over the past four years, respectively. What is the geometric average return? Select one: a. 2.04% b. 0.27% c. 2.44% d. 1.30% e. 1.30%
A stock has annual returns of 0.02%, 6.93%, 8.21%, and -2.02% over the past four years. What is the stock’s geometric average return over this period? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations).
You’ve compiled the following annual returns on the stock of Rumba Corp. over the past 4 years: -10%, 16%, 10%, and 8%. a. Calculate the arithmetic average return (ra) on the stock over this 4-year period. b. Calculate the compound or geometric average return (rg) on the stock over this 4-year period.
A stock had returns of 16.94 percent (1 year ago), -27.01 percent (2 years ago), X (3 years ago), and 22.33 percent (4 years ago) in each of the past 4 years. Over the past 4 years, the arithmetic average annual return for the stock was 10.75 percent. What was the geometric average annual return for the stock over the past 4 years? Answer as a rate in decimal format so that 12.34% would be entered as 1234 and 0.98%...
1. We observe the following annual returns on a stock in the past three years. The annual risk- free rate is 5%. Year 2016 2016 | Realized Return | 10% - 2017 300% 2018 -10% 2018 | (a) What is the arithmetic average stock return? (4%) (b) What is the geometric average stock return? (4%) (c) What are the sample mean and standard deviation of the stock return? (8%) (d) What is the stock's Sharpe ratio? (4%) (e) Jessica invests...
A stock had returns of 11.81 percent (1 year ago), -23.65 percent (2 years ago), X (3 years ago), and 21.28 percent (4 years ago) in each of the past 4 years. Over the past 4 years, the geometric average annual return for the stock was 7.41 percent. What was the arithmetic average annual return for the stock over the past 4 years? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98%...
A stock had returns of 16.59 percent (1 year ago), -27.64 percent (2 years ago), X (3 years ago), and 23.57 percent (4 years ago) in each of the past 4 years. Over the past 4 years, the geometric average annual return for the stock was 4.4 percent. What was the arithmetic average annual return for the stock over the past 4 years? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98%...
A stock had returns of 14.21 percent (1 year ago), -32.69 percent (2 years ago), X (3 years ago), and 22.82 percent (4 years ago) in each of the past 4 years. Over the past 4 years, the arithmetic average annual return for the stock was 8.25 percent. What was the geometric average annual return for the stock over the past 4 years? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98%...
A stock had returns of 13.18 percent (1 year ago), -29.16 percent (2 years ago), X (3 years ago), and 26.33 percent (4 years ago) in each of the past 4 years. Over the past 4 years, the geometric average annual return for the stock was 4.05 percent. What was the arithmetic average annual return for the stock over the past 4 years? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98%...