A stock has had returns of -26 percent, 12 percent, 34 percent, -8 percent, 27 percent,...

Question

Question

A stock has had returns of -26 percent, 12 percent, 34 percent, -8 percent, 27 percent, and 23 percent over the last six year

Answer 1

✔ Recommended Answer

Answer #1

Arithmetic Average Return = (-0.26 + 0.12 + 0.34 - 0.08 + 0.27 + 0.23)/6

Arithmetic Average Return = 10.33%

Geometric Average Return = [(0.74)(1.12)(1.34)(0.92)(1.27)(1.23)]^1/6 - 1

Geometric Average Return = 8.10%

Answer 2

Similar Homework Help Questions

A stock has had returns of -26 percent, 12 percent, 34 percent, -8 percent, 27 percent,...

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,...

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 8 percent, 26 percent, 14 percent, -17 percent, 31 percent,...

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,...

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
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
A stock has had returns of -19.8 percent, 29.8 percent, 33.6 percent, -10.9 percent, 35.6 percent,...

A stock has had returns of -19.8 percent, 29.8 percent, 33.6 percent, -10.9 percent, 35.6 percent, and 27.8 percent over the last six years. What are the arithmetic and geometric 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 -19.5 percent, 29.5 percent, 30 percent, -10.6 percent, 35.3 percent,...

A stock has had returns of -19.5 percent, 29.5 percent, 30 percent, -10.6 percent, 35.3 percent, and 27.5 percent over the last six years. What are the arithmetic and geometric 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 −19.7 percent, 29.7 percent, 32.4 percent, −10.8 percent, 35.5 percent, and 27.7 percent ove...

A stock has had returns of −19.7 percent, 29.7 percent, 32.4 percent, −10.8 percent, 35.5 percent, and 27.7 percent over the last six years. What are the arithmetic and geometric 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 −19.3 percent, 29.3 percent, 27.6 percent, −10.4 percent, 35.1 percent,...

A stock has had returns of −19.3 percent, 29.3 percent, 27.6 percent, −10.4 percent, 35.1 percent, and 27.3 percent over the last six years. What are the arithmetic and geometric 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.)

A stock has had returns of 23 percent, 13 percent, 2 percent, -12 percent, -10 percent,...

A stock has had returns of 23 percent, 13 percent, 2 percent, -12 percent, -10 percent, and 19 percent over the last six years. What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)