Arithmetic average is the simple mean
(8+26+14-17+31-1)/6 = 61/6 = 10.17%
Geometric mean gives a more better picture when we look into stock returns. It can be calculated as under
[(1+R1)*(1+R2)*(1+R3)*...*(1+Rn)]^(1/n) - 1
=(1.08*1.26*1.14*.83*1.31*.99)^(1/6) - 1
= (1.6699)^1/6-1
= 1.0892-1
=0.0892 or 8.92%
Telur 15. Arithmetic and Geometric Returns [LO1] A stock has had returns of 8 percent, 26...
A stock has had returns of 8 percent, 26 percent, 14 percent, −17 percent, 31 percent, and −1 percent over the last six years. What are the arithmetic and geometric average returns for the stock?
A stock has had returns of 8 percent, 26 percent, 14 percent, -17 percent, 31 percent, and -1 percent over the last six years. What are the arithmetic and geometric average returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Arithmetic average return % Geometric average return
A stock has had returns of 8 percent, 26 percent, 14 percent, -17 percent, 31 percent, and -1 percent over the last six years. What are the arithmetic and geometric average returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) 10.17 % Arithmetic average return 36.99% Geometric average return
15. Arithmetic and Geometric Returns (L01) A stock has had returns of 9 percent, 21 percent, 32 percent, -18 percent, 27 percent, and -12 percent over the last six years. What are the arithmetic and geometric returns for the stock?
A stock has had returns of -26 percent, 12 percent, 34 percent, -8 percent, 27 percent, and 23 percent over the last six years. What are the arithmetic and geometric average returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) 10.33% Arithmetic average return Geometric average return
A stock has had returns of -26 percent, 12 percent, 34 percent, -8 percent, 27 percent, and 23 percent over the last six years. What are the arithmetic and geometric average returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Arithmetic average return Geometric average return
A stock has had returns of -26 percent, 12 percent, 34 percent, -8 percent, 27 percent, and 23 percent over the last six years. What are the arithmetic and geometric average returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Arithmetic average return Geometric average return
A stock has had returns of 10 percent, 17 percent, 26 percent, -14 percent, 24 percent, and –9 percent over the last six years. What are the arithmetic and geometric average returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) % Arithmetic average return Geometric average return
A stock has had returns of 18 percent, 13 percent, 8 percent, -15 percent, -2 percent, and 20 percent over the last six years. What are the arithmetic and geometric returns for the stock?
A stock has had returns of 19 percent, 16 percent, 14 percent, -13 percent, 17 percent, and 3 percent over the last six years. The arithmetic and geometric returns for the stock are ______ and _______, respectively