Question

**Explain the difference between weighted average and
geometric mean...**

Answer #1

Weighted average is a form of airthemetic mean where each value has a certain weight associated with it where geometric mean is the root n of product of n obs

Example:

Variable (X) | Weight (W) | V*W |

10 | 5 | 50 |

15 | 10 | 150 |

20 | 7 | 140 |

25 | 3 | 75 |

Weighted mean = sum(V*W)/sum(W)

Weighted mean = 415/25

**Weighted mean = 16.6**

Geometric mean of 10, 15, 20, 25

Geometric mean = ( 10*15*20*25)^(1/4)

Geometric mean = 75000^(1/4)

**Geometric mean = 16.54**

The methodology is different for the two

Explain what’s the difference
between dollar weighted return and geometric return. Assume you
invested $100 today, invested additional $20 at the end of year 3,
withdraw $50 at the end of year 4. At the end of year 5, you have
$20 left in your account. What is your dollar weighted return
(IRR)? Show your calculate steps using either financial calculator
or Excel sheet.

Explain the difference between Price-Weighted Index and
Value-Weighted Index.

what is the difference between arithmetic and geometric
averages?

The Value Line Index is an equally-weighted
geometric average of the returns of about 1,700 firms. The value of
an index based on the geometric average returns of three stocks
where the returns on the three stocks during a given period were
32%, 5%, and -10%, respectively, is
Multiple Choice
4.3%.
7.6%.
9.0%.
13.4%.
5.0%.

The geometric mean is often used in business and economics for
finding average rates of change, average rates of growth, or
average ratios. Given n values (all of which are positive), the
geometric mean is the nth root of their product. The average growth
factor for money compounded at annual interest rates of 8.1%,
4.3%, and 2.3% can be found by computing the geometric mean of
1.081, 1.043, and 1.023. Find that average growth factor, or
geometric mean. What single...

Explain the difference between marginal revenue and average revenue
for a monopoly.

2) What is differences between time-weighted and dollar-weighted
returns, geometric and arithmetic averages and have some idea when
to use each.
3) How do you gain a basic understanding of returns and risk of
various asset classes and understand that securities that offer
higher returns have higher risk.
4) How will you be able to construct portfolios of different risk
levels, given information about risk free rates and returns on
risky assets.

Please introduce what is the difference between
effective angle of attack，induced angle of attack and geometric
angle of attack

Explain the difference between marginal and average tax rates,
and identify which of these rates is used in capital budgeting and
why.

Report the portfolio cumulative return and annual geometric
average over the period. And explain why the portfolio does not
deliver the annual geometric mean of 6% p.a. Using mean- variance
framework to explain it.
The portfolio each weight is SMB 15%; HML 45%; Mom 40%.
date
SMB (return rate)
HML (return rate)
Mom (return rate)
201901
3.01%
-0.62%
-8.68%
201902
2.06
-2.84
0.79
201903
-3.13
-4.07
2.18
201904
-1.68
1.93
-2.61
201905
-1.2
-2.39
7.61
201906
0.33
-1.08
-2.23
201907...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 6 minutes ago

asked 11 minutes ago

asked 11 minutes ago

asked 13 minutes ago

asked 19 minutes ago

asked 36 minutes ago

asked 36 minutes ago

asked 37 minutes ago

asked 44 minutes ago

asked 55 minutes ago

asked 55 minutes ago

asked 56 minutes ago