Question

Ten annual returns are listed in the following table:

−19.8 % |
16.1 % |
17.9 % |
−49.9 % |
43.9 % |
1.1 % |
−16.9 % |
45.6 % |
44.8 % |
−3.5 % |

a. What is the arithmetic average return over the 10-year period? (Round to four decimal places.)

**b.** What is the geometric average return over
the 10-year period? (Round to four decimal places.)

**c.** If you invested $100 at the beginning, how
much would you have at the end?

Answer #1

1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | Total | |||

-19.80% | 16.10% | 17.90% | -49.90% | 43.90% | 1.10% | -16.90% | 45.60% | 44.80% | -3.50% | 79.30% | |||

÷ 10 | |||||||||||||

a. | Arithmetic Average return = | 7.93% | |||||||||||

Geometric average return = [(1+r1)*(1+r2)….(1+rn)]^(1/n) - 1 | |||||||||||||

1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | ||||

-19.80% | 16.10% | 17.90% | -49.90% | 43.90% | 1.10% | -16.90% | 45.60% | 44.80% | -3.50% | ||||

1+r1 | 1+r2 | 1+r3 | 1+r4 | 1+r5 | 1+r6 | 1+r7 | 1+r8 | 1+r9 | 1+r10 | ||||

80.20% | 116.10% | 117.90% | 50.10% | 143.90% | 101.10% | 83.10% | 145.60% | 144.80% | 96.50% | ||||

Geometric Average return = | |||||||||||||

[(1+(-)19.80%)*(1+16.10%)*(1+17.90%)*(1+(-)49.90%)*(1+43.90%)*(1+1.10%)*(1+(-)16.90%)*(1+45.60%)*(1+44.80%)*(1+(-)3.50%)]^(1/10) - 1 | |||||||||||||

1.030678 -1 | |||||||||||||

3.07% | Ans b. | ||||||||||||

c. | $100 invested at beginning would be $100 x (1+3.07%)^10 = $135.31 | ||||||||||||

Ten annual returns are listed in the following table: -19.5%
16.3% 17.9% -49.3% 43.5% 1.6% -16.7% 46.2% 44.8% -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?
The geometric average return over the 10-year period is (round to
4 decimal places)
c. If you invested $100 at the beginning, how much would you have
at the end? (round to four decimal places)

Ten annual returns are listed in the following table: negative
19.5−19.5% 16.916.9% 18.318.3% negative 49.8−49.8% 43.843.8%
1.51.5% negative 16.9−16.9% 45.545.5% 44.844.8% negative
3.7−3.7% 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? round to five decimal places

Ten annual returns are listed in the following? table:
?19.5?%
16.9?%
18.1?%
?49.3?%
43.3?%
1.8?%
?16.6?%
46.4?%
44.6?%
?3.9?%
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?

Ten annual returns are listed in the following table: negative
19.9% 16.9% 17.7% negative 49.7% 43.1% 1.9% negative 16.7%
46.3% 44.5% negative 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?

Ten annual returns are listed in the following table: negative
19.1−19.1% 16.916.9% 18.418.4% negative 49.7−49.7% 43.743.7%
1.91.9% negative 16.2−16.2% 46.446.4% 44.944.9% negative
3.3−3.3% 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?
round answers to 4 decimal points

The annual returns on the stock of a firm during the last four
years are provided below.
___________________________________
Year Return
___________________________________
2016
–0.10 (or –10%)
2017
0.10 (or 10%)
2018
0.15 (or 15%)
2019
0.25 (or 25%)
__________________________________
a) Find the holding period return of the stock over the
four-year period.
b) Compute the arithmetic average return of the stock over the
four-year period.
c) Calculate the geometric average return of the...

The annual returns on the stock of a firm during the last four
years are provided below.
___________________________________
Year Return
___________________________________
2016
–0.10 (or –10%)
2017
0.10 (or 10%)
2018
0.15 (or 15%)
2019
0.25 (or 25%)
__________________________________
a) Find the holding period return of the stock over the
four-year period.
b) Compute the arithmetic average return of the stock over the
four-year period.
c) Calculate the geometric average return of the...

1. Using the data in the table to the right,
calculate the return for investing in the stock from January 1 to
December 31. Prices are after the dividend has been paid.
Date Price Dividend
1/2/03 $32.24 -
2/5/03 $30.91 $0.19
5/14/03 $30.98 $0.18
8/13/03 $32.83 $0.17
11/12/03 $39.42 $0.18
1/2/04 $40.14 -
What is the return for the entire period? (round to two decimal
places)
2. Ten annual returns are listed in the
following table:
−19.6%
16.8%
18.2%
−49.6%...

Q1) A stock earned annual returns of 5%, 10%, -7%, and 16% for
the last four years.
a) What is the arithmetic average return for the stock over the
last four years?
b) What is the standard deviation of the returns over the last
four years?
c) What is the geometric average return for the stock over the
last four years?
d) What is the holding period return for the stock over the last
four years?
e) What would have...

Marsh Inc. had the following? end-of-year stock prices over the
last five years and paid no cash? dividends:
Time Marsh
1 $8
2 $11
3 $17
4 $7
5 $8
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? Marsh's stock over this? period?
c. What is the geometric average rate of return
earned by investing in? Marsh's stock over this? period?...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 4 minutes ago

asked 12 minutes ago

asked 16 minutes ago

asked 32 minutes ago

asked 43 minutes ago

asked 43 minutes ago

asked 55 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago