Question
answer A-D please
Consider the following five monthly returns: 0.01 -0.06 0.04 -0.05 a. Calculate the arithmetic average monthly return over th
0 0
Add a comment Improve this question Transcribed image text
Answer #1

a)
Arithmetic average = Sum of return / n
= (0.01 + (-0.06) + 0 + 0.04 + (-0.05)) / 5
= -0.06 / 5
= -1.20%

b)
Geometric average monthly return = ((1+0.01) * (1 - 0.06) * (1 + 0) * (1 + 0.04) * (1 - 0.05))^(1/5) - 1
= 0.987282 - 1
= -1.27%

A B C D Month Return 0.01 -0.06 2 3 4 0 0.04 -0.05 Variance 0.18% d) Standard deviation = Variance^(1/2) = 0.18%^(1/2) 4.21%

EXCEL FORMULA:

-NM Month Return 0.01 -0.06 2 10.04 -0.05 Variance =VAR.S(C3:07)

Add a comment
Know the answer?
Add Answer to:
answer A-D please Consider the following five monthly returns: 0.01 -0.06 0.04 -0.05 a. Calculate the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • pleaseee help Consider the following five monthly returns: 0.09 0.02 0.08 0.12 0.03 a. Calculate the...

    pleaseee help Consider the following five monthly returns: 0.09 0.02 0.08 0.12 0.03 a. Calculate the arithmetic average monthly return over this period, b. Calculate the geometric average monthly return over this period. c. Calculate the monthly variance over this period. d. Calculate the monthly standard deviation over this period. a. Calculate the arithmetic average monthly return over this period. The arithmetic average is %. (Round to two decimal places.) b. Calculate the geometric average monthly return over this period....

  • Consider the following five monthly​ returns: 7​% −3​% 5​% 11​% −1​% a. Calculate the arithmetic average...

    Consider the following five monthly​ returns: 7​% −3​% 5​% 11​% −1​% a. Calculate the arithmetic average monthly return over this period and express your answer as a percentage per month. b. Calculate the geometric average monthly return over this period. c. Calculate the monthly variance over this period. d. Calculate the monthly standard deviation over this period.

  • Consider the following five monthly​ returns: 4% -2%. 3%. 8%. -1% a. Calculate the geometric average...

    Consider the following five monthly​ returns: 4% -2%. 3%. 8%. -1% a. Calculate the geometric average monthly return over this period. b Calculate the arithmetic average monthly return over this period and express your answer as a percentage per month. c. Calculate the monthly variance over this period. d. Calculate the monthly standard deviation over this period.

  • give all answer You've observed the following returns on Yamauchi Corporation's stock over the past five...

    give all answer You've observed the following returns on Yamauchi Corporation's stock over the past five years: -24.3 percent, 13.2 percent, 29.4 percent, 2.1 percent, and 21.1 percent. a. What was the arithmetic average return on the stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the variance of the returns over this period? (Do not round intermediate calculations and round your...

  • You've observed the following returns on Yamauchi Corporation's stock over the past five years: -29.7 percent,...

    You've observed the following returns on Yamauchi Corporation's stock over the past five years: -29.7 percent, 16.8 percent, 36.6 percent, 3.9 percent, and 22.9 percent. a. What was the arithmetic average return on the stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the variance of the returns over this period? (Do not round intermediate calculations and round your answer to 6...

  • You've observed the following returns on Yamauchi Corporation's stock over the past five years: -27.9 percent,...

    You've observed the following returns on Yamauchi Corporation's stock over the past five years: -27.9 percent, 15.6 percent, 34.2 percent, 3.3 percent, and 22.3 percent. a. What was the arithmetic average return on the stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the variance of the returns over this period? (Do not round intermediate calculations and round your answer to 6...

  • You've observed the following returns on Yamauchi Corporation's stock over the past five years: -24.6 percent,...

    You've observed the following returns on Yamauchi Corporation's stock over the past five years: -24.6 percent, 13.4 percent, 29.8 percent, 2.2 percent, and 21.2 percent. a. What was the arithmetic average return on the stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the variance of the returns over this period? (Do not round intermediate calculations and round your answer to 6...

  • You've observed the following returns on Yamauchi Corporation's stock over the past five years: -29.7 percent,...

    You've observed the following returns on Yamauchi Corporation's stock over the past five years: -29.7 percent, 16.8 percent, 36.6 percent, 3.9 percent, and 22.9 percent. a. What was the arithmetic average return on the stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the variance of the returns over this period? (Do not round intermediate calculations and round your answer to 6...

  • You've observed the following returns on Yamauchi Corporation's stock over the past five years: -28.5 percent,...

    You've observed the following returns on Yamauchi Corporation's stock over the past five years: -28.5 percent, 16 percent, 35 percent, 3.5 percent, and 22.5 percent. a. What was the arithmetic average return on the stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the variance of the returns over this period? (Do not round intermediate calculations and round your answer to 6...

  • You've observed the following returns on Yamauchi Corporation's stock over the past five years: -24.6 percent,...

    You've observed the following returns on Yamauchi Corporation's stock over the past five years: -24.6 percent, 13.4 percent, 29.8 percent, 2.2 percent, and 21.2 percent. What was the arithmetic average return on the stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the variance of the returns over this period? (Do not round intermediate calculations and round your answer to 6 decimal...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT