You have found an asset with an arithmetic average return of 14.00 percent and a geometric...
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.)
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You have found an asset with an arithmetic average return of 14.00 percent and a geometric...
You have found an asset with an arithmetic average return of 13.40 percent and a geometric...
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...
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.)
Over a 48-year period an asset had an arithmetic return of 13.2 percent and a geometric...
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...
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 %
Over a 40-year period, an asset had an arithmetic return of 11.2 perces and a geome...
Over a 40-year period, an asset had an arithmetic return of 11.2 perces and a geome return of 9.4 percent Using Blume's formula, what is your best estimate of the future annu returns over 5 years? 10 years? 20 years? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) 5 years 10 years 20 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....
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...
Suppose the returns on an asset are normally distributed The historical average annual return for the...
Suppose the returns on an asset are normally distributed The historical average annual return for the asset was 76 percent and the standard deviation was 8.6 percent. What is the probability that your return on this asset will be less than 93 percent in a given year? Use the NORMDIST function in Excele to answer this question (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Probability What range of returns...
(Calculating the geometric and arithmetic average rate of return) The common stock of the Brangus Cattle...
(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...
Which of the following statement regarding the arithmetic mean and geometric mean is true? a) Arithmetic...
Which of the following statement regarding the arithmetic mean and geometric mean is true? a) Arithmetic mean is always a better measure of average performance. b) Geometric mean is never a better measure of average performance. c) Arithmetic mean is always a better measure of performance over single periods. d) Geometric mean is the best estimate of the expected return for the next period.
A stock has had returns of 10 percent, 17 percent, 26 percent, -14 percent, 24 percent, and –9 percent over the last si...
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
Over a 40-year period, an asset had an arithmetic return of 11.2 perces and a geome return of 9.4 percent Using Blume's formula, what is your best estimate of the future annu returns over 5 years? 10 years? 20 years? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) 5 years 10 years 20 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...
Suppose the returns on an asset are normally distributed The historical average annual return for the asset was 76 percent and the standard deviation was 8.6 percent. What is the probability that your return on this asset will be less than 93 percent in a given year? Use the NORMDIST function in Excele to answer this question (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Probability What range of returns...
(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...
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
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