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show work 2. Michael has an investment with the following annual returns the past four years:...
Problem 2 (10 marks). In the past four years, the annual returns of one company's stock are 12%, 18%, and -14%, and 7%. a) What is the geometric average return? [3 marks b) What is the arithmetic average of the return [3 marks) c) According to an economist' forecast on the Year 2020, the probabilities of repeating the performances of the former four years are 30%, 30%, 20%, and 20%, respectively. What is the expected return of the stock in...
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 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).
Ten annual returns are listed in the following table: 1.3% 45.1%. 18.3% 19.8% 16.9% 49.9% 43.2% 16.1% 46.3% 3.4% 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 return over the 10-year period? The arithmetic average return over the 10-year period is 0.0819 (Round to...
Ten annual returns are listed in the following table: 45.7% - 19.2% -16.5% -3.8% 16.1% 17.9% - 49.6% 43.2% 1.4% 44.8% 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 return over the 10-year period? The arithmetic average return over the 10-year period is .08....
Following are the annual returns on a portfolio over each of the last three years: Year Return 2011 10% 2012 15% 2013 20% What was the arithmetic average return and geometric average return over the past three years? What would be your average return if you invested $200,000 per year at the beginning of each of the last three years? What would be your average return if you invested $100,000 at the beginning of 2011, $200,000 at the beginning of...
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%...
all one question please help with all Problem #1: Geometric Mean Returns Here are the total returns for the S&P500 for the first ten years of this century. Year Return 2001 -11.85 % -21.97 % 2002 2003 28.36% 2004 10.74% 2005 4.83% 2006 15.61% 2007 5.48% 2008 -36.55% 2009 26.94% 18.00 % 2010 1. If you invested one dollar on January 1, 2001 in the S&eP500, how much would it be worth ten years later? on January 1, 2011. It...
CH11Q5 Ten annual returns are listed in the following table: - 19.2% 16.4% 17.6% -49.4% 43.8% 1.9% -16.3% 46.3% 44.7% -3.2% 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 return over the 10-year period? The arithmetic average return over the 10-year period is (Round...
You’ve observed the following returns on INTC Corporation’s stock over the past five years: -25%, -16%, -9%, 11%, and 18%. Answer Questions average return on stock over five years : 9.6% variance of returns: 0.04878 a) What is the standard deviation of returns over this period? b)What range of returns would you expect to see 95% of the time? c)What is the geometric average return on the stock over this five-year period?