Question

The rates of return on Cherry Jalopies, Inc., stock over the last five years were 12%, 11%, −2%, 7%, and 10%. Over the same period, the returns on Straw Construction Company’s stock were 8%, 21%, −2%, 4%, and 13%. What was the arithmetic average return on each stock over this period?

Answer #1

**Arithmetic average return=
(r _{1}+r_{2}+r_{3}+.........+r_{n})/n**

Calculation is as follows:

**Formulas used:**

The rates of return on Cherry Jalopies, Inc., stock over the
last five years were 15 percent, 11 percent, −1 percent, 4 percent,
and 13 percent. Over the same period, the returns on Straw
Construction Company’s stock were 16 percent, 20 percent, −3
percent, 1 percent, and 12 percent.
Calculate the variances and the standard deviations for Cherry
and Straw. (Do not round intermediate calculations. Enter
your variance as a decimal rounded to 5 decimal places. Enter your
standard deviation...

The rates of return on Cherry Jalopies, Inc., stock over the
last five years were 14 percent, 11 percent, −1 percent, 3 percent,
and 14 percent. Over the same period, the returns on Straw
Construction Company’s stock were 16 percent, 19 percent, −2
percent, 2 percent, and 11 percent.
Calculate the variances and the standard deviations for Cherry
and Straw. (Do not round intermediate calculations. Enter
your variance as a decimal rounded to 5 decimal places. Enter your
standard deviation...

The rate of return on Cherry Jalopies, Inc., stock over the last
five years was 20 percent, 11 percent, -6 percent, 5 percent, and 8
percent. Over the same period, the return on Straw Construction
Company’s stock was 16 percent, 19 percent, -3 percent, 2 percent,
and 15 percent.
Calculate the variances and the standard deviations for Cherry
and Straw.

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?...

9. You’ve observed the following returns on Barnett
Corporation’s stock over the past five years: -12 percent, 23
percent, 18 percent, 7 percent, and 13 percent
What was the arithmetic average return on the stock over
this five-year period?
What was the variance of the returns over this period?
The standard deviation?
10. For problem 9, suppose the average inflation rate
over this period was 3.2 percent and the average T-bill rate over
the period was 4.3 percent.
A What...

You’ve observed the
following returns on SkyNet Data Corporation’s stock over the past
five years: 19 percent, 24 percent, 11 percent, −9 percent, and 13
percent.
a.What was the arithmetic average return
on the company’s stock over this 5-year period?
b.What was the variance of the company’s
returns over this period? The standard deviation?
Suppose the average
inflation rate over this period was 3.6 percent and the average
T-bill rate over the period was 4.1 percent.
c.What...

9. Calculating Returns and Variability You’ve observed the
following returns on Yasmin Corporation’s
stock over the past five years: 19 percent, −13 percent, 7 percent,
25 percent, and 16 percent.
a. What was the arithmetic average return on the company’s stock
over this five-year period?
b. What was the variance of the company’s stock returns over this
period? The standard deviation?
10. Calculating Real Returns and Risk Premiums In Problem 9,
suppose the average inflation rate over
this period was...

You’ve observed the following returns on Crash-n-Burn Computer’s
stock over the past five years: 4 percent, –15 percent, 26 percent,
19 percent, and 14 percent.
What was the arithmetic average return on the company's stock
over this five-year period?
What was the variance of the company's returns over this
period?
What was the standard deviation of the company’s returns over
this period?

You’ve observed the following returns on Yasmin Corporation’s
stock over the past five years: 19 percent, –13 percent, 16
percent, 21 percent, and 10 percent.
a. What was the arithmetic average return on the
company's stock over this five-year period? (Do not round
intermediate calculations. Enter your answer as a percent rounded
to 1 decimal place, e.g., 32.1.)
Average return
{C} {C}{C} %
b-1 What was the variance of the company's stock
returns over this period? (Do not...

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 Company
1 $17
2 $12
3 $13
4 $21
5 $26
a. The annual rate of return at the end of year 2 is ___%
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 average rate of...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 25 minutes ago

asked 38 minutes ago

asked 45 minutes ago

asked 59 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago