Suppose you buy a stock for two years. In the first year the stock is up...
Suppose you buy a stock for two years. In the first year the stock is up 50%; in the second year it is down 50%.
Find the arithmetic and geometric average. Prove the geometric average represents the HPR.
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Suppose you buy a stock for two years. In the first year the
stock is up...
The stock had returns of -50% and +100% in two consecutive years. If the initial stock...
The stock had returns of -50% and +100% in two consecutive years. If the initial stock was $100, what is it at the end of the first and second year? In the first year you invest in 1 share, in the second year in another 2 shares Find: Arithmetic Average Geometric Average Dollar Weighted Average Which of the averages best reflects historical performance over long time? Given above data, what return would be reasonably expected for the third year?
Suppose you have $200 with which you can buy shares of stock from two companies: ABC...
Suppose you have $200 with which you can buy shares of stock from two companies: ABC Hot Chocolate Company and XYZ Lemonade. Each company's stock currently sells for $100 per share. ABC hot chocolate company: If the temperature next year is lower than average, the interest rate will be 20%. There is a 50% chance that it will be colder than average next year. But if the temperature is warmer (50% chance), there is no returns from this stock. XYZ...
A manager buys three shares of stock today, and then sells one of those shares each year for the next 3 years. His acti...
A manager buys three shares of stock today, and then sells one of those shares each year for the next 3 years. His actions and the price history of the stock are summarized below. The stock pays no dividends. Time Price $ 150 180 180 180 Action Buy 3 shares Sell i share Sell i share Sell l share 3 a. Calculate the time-weighted geometric average return on this "portfolio." (Do not round intermediate calculations. Round your answer to 2...
Suppose the rate of return for a particular stock during the past two years was 15%...
Suppose the rate of return for a particular stock during the past two years was 15% and 50%. Compute the geometric mean rate of return. (Note: A rate of return of 15% is recorded as 0.15, and a rate of return of 50% is recorded as 0.50.) The geometric mean rate of return is _____%.
Caswell Enterprises had the following end-of-year stock prices over the last five years and paid no...
Caswell Enterprises had the following end-of-year stock prices over the last five years and paid no dividends. Time Caswell 1 $12 2 9 3 7 4 6 5 12 Calculate the annual rate of return for each year from the above information. What is the arithmetic average rate of return earned by investing in Caswell's stock over this period? What is the geometric average rate of return earned by investing in Caswell's stock over this period? Considering the beginning and...
Caswell Enterprises had the following end-of-year stock prices over the last five years and paid no...
Caswell Enterprises had the
following end-of-year stock prices over the last five years and
paid no dividends. Time Caswell 1 $12 2 9 3 7 4 6 5 12 Calculate
the annual rate of return for each year from the above information.
What is the arithmetic average rate of return earned by investing
in Caswell's stock over this period? What is the geometric average
rate of return earned by investing in Caswell's stock over this
period? Considering the beginning and...
MC Qu. 36 Suppose you own... Suppose you own two stocks, A and B in year...
MC Qu. 36 Suppose you own... Suppose you own two stocks, A and B in year stock A higher geometric average return? and stock Bearns a 9% return. In year 2. stock A cams an 18% return and stock Beams an I return. Which stock has the Multiple Choice O Stock ! ! Oo oo 1 O The two stosowa ne trageretum Math the go verage ratum
Depreciation and Automobiles. Suppose you buy a new car for $28 comma 000. One year later...
Depreciation and Automobiles. Suppose you buy a new car for $28 comma 000. One year later it is worth $22 comma 400, and two years later it is worth $20 comma 160. The depreciation on the car A. rises for the second year. B. is 20 percent for the first year. C. cannot be determined. D. is 20 percent in the second year
How do you do this problem? Suppose you have $6,800 invested in a stock portfolio in...
How do you do this problem? Suppose you have $6,800 invested in a stock portfolio in October. You have $3,600 invested in Stock A, $2,100 in Stock B and $1,100 in Stock C. The HPR for the month of September for Stock A was 1.2%, for Stock B the HPR was -3.9% and for Stock C the HPR was 2.9%. What was the average HPR for the portfolio for the month of October?
Suppose you're crafting a portfolio of two stocks. You plan to buy $6,000 worth of the...
Suppose you're crafting a portfolio of two stocks. You plan to buy $6,000 worth of the first stock and $14,000 worth of the second stock. The first stock has an expected annual return of 10% and volatility of 40%. The second stock has an expected annual return of 8% and volatility of 30%. The risk-free rate is 1%. The correlation coefficient of the two stocks' returns is 0.1. 1. What is the Sharpe Ratio of the first stock. Round to...
Suppose you have $200 with which you can buy shares of stock from two companies: ABC Hot Chocolate Company and XYZ Lemonade. Each company's stock currently sells for $100 per share. ABC hot chocolate company: If the temperature next year is lower than average, the interest rate will be 20%. There is a 50% chance that it will be colder than average next year. But if the temperature is warmer (50% chance), there is no returns from this stock. XYZ...
A manager buys three shares of stock today, and then sells one of those shares each year for the next 3 years. His actions and the price history of the stock are summarized below. The stock pays no dividends. Time Price $ 150 180 180 180 Action Buy 3 shares Sell i share Sell i share Sell l share 3 a. Calculate the time-weighted geometric average return on this "portfolio." (Do not round intermediate calculations. Round your answer to 2...
Caswell Enterprises had the
following end-of-year stock prices over the last five years and
paid no dividends. Time Caswell 1 $12 2 9 3 7 4 6 5 12 Calculate
the annual rate of return for each year from the above information.
What is the arithmetic average rate of return earned by investing
in Caswell's stock over this period? What is the geometric average
rate of return earned by investing in Caswell's stock over this
period? Considering the beginning and...
MC Qu. 36 Suppose you own... Suppose you own two stocks, A and B in year stock A higher geometric average return? and stock Bearns a 9% return. In year 2. stock A cams an 18% return and stock Beams an I return. Which stock has the Multiple Choice O Stock ! ! Oo oo 1 O The two stosowa ne trageretum Math the go verage ratum
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