Question

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?

Answer #1

Average return = Sum of all returns / Number of period

Average return = -0.195+0.169+0.181-0.493+0.433+0.018-0.166+0.464+0.446-0.039)/10

Average return = 8.18%

.

Geometric average = [Product of (1+per period return)]^(1/Number of period)-1

Geometric average = ((1-0.195)*(1+0.169)*(1+0.181)*(1-0.493)*(1+0.433)*(1+0.018)*(1-0.166)*(1+0.464)*(1+0.446)*(1-0.039))^(1/10)-1

Geometric return = 3.38228%

.

Total value today = Investment*(1+Geometric return)^Years

Total value today = 100*(1+3.38228%)^10

Total value today = 139.463660

Total Value = ~ **$139.46**

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: 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:
−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?

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

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...

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
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Here are the total returns for the S&P500 for the first ten
years of this century. Assume you invested $1 in the S&P500 on
January 1, 2001. Your first year's return was -11.85%.
Year
Return
2001
-11.85%
2002
-21.97%
2003
28.36%
2004
10.74%
2005
4.83%
2006
15.61%
2007
5.48%
2008
-36.55%
2009
26.94%
2010
18.00%
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