A stock produced total returns of 15%, 12%, 20%, and -36% over the past four years,...

Question

Question

A stock produced total returns of 15%, 12%, 20%, and -36% over the past four years, respectively. What is the geometric average return?

Select one:

a. 2.04%

b. 0.27%

c. 2.44%

d. 1.30%

e. 1.30%

business finance

Answer 1

Answer #1

Geometric average return (1.1% x 1.12 x 1.20 x ().M ) a1/4-1 -0.27% : :

Answer 2

Similar Homework Help Questions

A stock produced total returns of 10%, 12%, 20%, and -36% over the past four years,...

A stock produced total returns of 10%, 12%, 20%, and -36% over the past four years, respectively. What is the average rate of return for this period of time? What is the geometric average return?
Problem 2 (10 marks). In the past four years, the annual returns of one company's stock...

Problem 2 (10 marks). In the past four years, the annual returns of one company's stock are 12%, 18%, and -14%, and 7%. a) What is the geometric average return? [3 marks b) What is the arithmetic average of the return [3 marks) c) According to an economist' forecast on the Year 2020, the probabilities of repeating the performances of the former four years are 30%, 30%, 20%, and 20%, respectively. What is the expected return of the stock in...
. Over the past five years, a stock produced returns of 10 percent, 18 percent, 2...

. Over the past five years, a stock produced returns of 10 percent, 18 percent, 2 percent, -9 percent, and 4 percent. a) What is the geometric return? b) What is the arithmetic return? c) What is the variance of the above returns? d) What is the sample standard deviation?

A stock has annual returns of 0.02%, 6.93%, 8.21%, and -2.02% over the past four years....

A stock has annual returns of 0.02%, 6.93%, 8.21%, and -2.02% over the past four years. What is the stock’s geometric average return over this period? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations).
Over the last six years the shares of company XYZ's stock had returns of 20 percent,...

Over the last six years the shares of company XYZ's stock had returns of 20 percent, 20 percent, 12 percent, 14 percent, 16 percent, and 11 percent. Required: (a)Calculate the arithmetic average return. (Click to select) (b)Calculate the geometric average return. (Click to select)
2. Over the past five years, a stock produced returns of 14%, 22%, -16%, 4%, and...

2. Over the past five years, a stock produced returns of 14%, 22%, -16%, 4%, and 11%. If the returns are normally distributed, what is the probability that an investor in this stock will NOT lose more than 7.4% nor earn more than 21.4% in any one given year? (Hint: Find average return and standard deviation first.)

You’ve observed the following returns on INTC Corporation’s stock over the past five years: -25%, -16%,...

You’ve observed the following returns on INTC Corporation’s stock over the past five years: -25%, -16%, -9%, 11%, and 18%. Answer Questions average return on stock over five years : 9.6% variance of returns: 0.04878 a) What is the standard deviation of returns over this period? b)What range of returns would you expect to see 95% of the time? c)What is the geometric average return on the stock over this five-year period?
Over the last six years the shares of company XYZ's stock had returns of 20 percent,...

Over the last six years the shares of company XYZ's stock had returns of 20 percent, 16 percent, 15 percent, 14 percent, 20 percent, and 11 percent. Required: (a) Calculate the arithmetic average return. (Click to select) 16.10% 16.00% 16.80% 16.20% 19.20% (b) Calculate the geometric average return. (Click to select) 15.96% 19.44% 15.76% 16.24% 16.06%
Over the past six years, the returns to Green Country Energy stock has been: 14 percent,...

Over the past six years, the returns to Green Country Energy stock has been: 14 percent, -7 percent, 17 percent, 15 percent, 2 percent, and -10 percent. What is the geometric average return? 9.85% O 6.24% None of these are correct. 8.15% O 4.60%

show work 2. Michael has an investment with the following annual returns the past four years:...

show work 2. Michael has an investment with the following annual returns the past four years: Year 1 12% Year 2 -5% Year 3 8% Year 4 18% What is the arithmetic average return over this four year period? 3. Using the annual returns given in problem 2, What is the geometric return over this four year period?