Question

A stock had returns of 15 percent, 14 percent, 18 percent, 5 percent, 16 percent, and 2 percent over the last six years. What is the arithmetic return for the stock? What is the geometric return for the stock?

Answer #1

Return during Year 1, r1 = 0.15

Return during Year 2, r2 = 0.14

Return during Year 3, r3 = 0.18

Return during Year 4, r4 = 0.05

Return during Year 5, r5 = 0.16

Return during Year 6, r6 = 0.02

Arithmetic Return = [r1 + r2 + r3 + r4 + r5 + r6] / 6

Arithmetic Return = [0.15 + 0.14 + 0.18 + 0.05 + 0.16 + 0.02] /
6

Arithmetic Return = 0.70 / 6

Arithmetic Return = 0.1167 or 11.67%

Geometric Return = [(1+r1) * (1+r2) * (1+r3) * (1+r4) * (1+r5) *
(1+r6)]^(1/6) - 1

Geometric Return = [(1+0.15) * (1+0.14) * (1+0.18) * (1+0.05) *
(1+0.16) * (1+0.02)]^(1/6) - 1

Geometric Return = 1.9219061^(1/6) - 1

Geometric Return = 1.1150 - 1

Geometric Return = 0.1150 or 11.50%

A stock had returns of 16 percent, 12 percent, 19 percent, 17
percent, 18 percent, and -1 percent over the last six years.
What is the arithmetic return for the stock?
What is the geometric return for the stock?

A stock had
returns of 14 percent, 11 percent, 19 percent, 20 percent, 13
percent, and -7 percent over the last six years.
Required:
(a)
What is the
arithmetic return for the stock?
(b)
What is the
geometric return for the stock?
Requirement 3:
If
the inflation rate last year was 8 percent, what was your total
real rate of return on this investment? (Do not round
intermediate calculations.)

A stock has had returns of 12 percent, 19 percent, 21 percent,
21 percent, -12 percent, 26 percent, and -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.)
a.) Arithmetic return?
b) Geometric return?

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...

Financial management question
A stock has had returns of 6 percent, 10 percent, 21
percent, -14 percent, and 25 percent over the last five
years.
1. What is the geometric return for the stock?
2. What is the standard deviation of this stock?

You find a certain stock that had returns of 9 percent, −16
percent, 18 percent, and 14 percent for four of the last five
years. The average return of the stock over this period was 10.3
percent. a. What was the stock’s return for the missing year? (Do
not round intermediate calculations and enter your answer as a
percent rounded to 1 decimal place, e.g., 32.1.) b. What is the
standard deviation of the stock’s return? (Do not round
intermediate...

A stock produced returns of 14 percent, 17 percent, and −10
percent over three of the past four years, respectively. The
arithmetic average for the past four years is 6 percent.
Show you work here (be as detailed and organized as
possible):
What is the missing return (i.e., the return in the fourth
year)?
What is the geometric average return over the four years?
What is the standard deviation of returns of the stock? Show
your work clearly below.

Question 22
You find a certain stock that had returns of 14 percent, -15
percent, 20 percent, and -12 percent for four of the last five
years. The average return of the stock over this period was 6.5
percent. What is the standard deviation of the stock's returns?
Group of answer choices
15.3 percent
16.8 percent
18.7 percent
19.3 percent
20.3 percent

A stock has had returns of 9 percent, 10 percent, 22 percent,
-12 percent, and 25 percent over the last five years.
1, What is the geometric return for the stock?
2. What is the standard deviation of this stock?

A stock has had returns of 8 percent, 10 percent, 20 percent,
-12 percent, and 24 percent over the last five years. Answer
questions 32 - 33
What is the geometric return for the stock?
What is the standard deviation of this stock?

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