The arithmetic and geometric averages for a return series of -26.90%; 84.80%; 88.20%; 36.90% and 32.00% are closest to
43.00% and 36.44%
43.00% and 34.00%
43.00% and 35.66%
43.00% and 43.00%
43.00% and 31.67%
The arithmetic and geometric averages for a return series of -26.90%; 84.80%; 88.20%; 36.90% and 32.00%...
The compound or geometric average return is always a) GREATER than or EQUAL to the arithmetic average return. b) LESS than or EQUAL to the arithmetic average return. c) GREATER than the arithmetic average return. d) LESS than the arithmetic average return.
(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...
calculate the arithmetic average return and the geometric average return using the following returns 2011 +7.6% 2012 -4.2% 2013 +7.6% 2014 -1.8%
You have found an asset with an arithmetic average return of 13.40 percent and a geometric average return of 10.40 percent. Your observation period is 30 years. What is your best estimate of the return of the asset over the next 5 years? 10 years? 20 years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
You have found an asset with an arithmetic average return of 12.80 percent and a geometric average return of 10.28 percent. Your observation period is 40 years. What is your best estimate of the return of the asset over the next 5 years? 10 years? 20 years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
You have found an asset with an arithmetic average return of 14.00 percent and a geometric average return of 10.52 percent. Your observation period is 50 years. What is your best estimate of the return of the asset over the next 5 years? 10 years? 20 years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Estimated Return 5 years % 10 years % 20 years %
Over a 48-year period an asset had an arithmetic return of 13.2 percent and a geometric return of 11.1 percent. Using Blume’s formula, what is your best estimate of the future annual returns over 7 years? 13 years? 24 years? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Over a 44-year period an asset had an arithmetic return of 11.8 percent and a geometric return of 9.7 percent. Using Blume’s formula, what is your best estimate of the future annual returns over 7 years? 12 years? 22 years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Future annual returns 7 years % 12 years % 22 years %
6) Over a 25-year period an asset had an arithmetic return of 13.1 percent and a geometric return of 12.6 percent. Using Blume's formula, what is your best estimate of the future annual returns over the next 10 years? A) 11.84 percent B) 13.04 percent C) 12.46 percent D) 11.18 percent E) 12.91 percent 6 7) Which one of the following statements is correct based on the period 1926-2016? A) The standard deviation of the annual rate of inflation was...
Calculate the arithmetic average return, the geometric average return, and standard deviation of yearly returns for each of the assets over the entire period. Which asset had the highest return? Highest risk? Year-by-Year Total Returns Year Large Company Stocks Small Company Stocks Long-term Corporate Bonds Long-term Government Bonds Intermed-term Government Bonds U.S. Treasury Bills Inflation Political Party 1926 11.62 0.28 7.37 7.77 5.38 3.27 -1.49 R 1927 37.49 22.10 7.44 8.93 4.52 3.12 -2.08 R 1928 43.61 39.69 2.84...