What is the standard deviation-geometric return

Assignment Help Financial Management
Reference no: EM13933681

A stock has had returns of 11 percent, -8 percent, 6 percent, 21 percent, 24 percent, and 16 percent over the last six years. What is the arithmetic return? What is the geometric return for this stock? What is the standard deviation? (use the arithmetic average for this calculation).

Reference no: EM13933681

Questions Cloud

The cost of goods manufactured and sold : Michael Hall asks you to review the results for the month and evaluate the company's approach to estimating product cost. In doing so, you should:
Why european union law takes precedence over domestic law : (i) Evaluate the purpose of Alternative Dispute Resolution (ADR) and, withparticular reference to the services provided by Acas, assess to what extent it is a successful means of resolving disputes outside the formal judicial process (ii) Explain ..
Bonds are convertible : The bonds are convertible at one $1,000 bond into 150 shares of stock. There are also stock options to buy 120,000 shares at a price of $5 per share.
Fictional -structural unemployment-cyclical unemployment : Differences between fictional unemployment, structural unemployment, and cyclical unemployment; and
What is the standard deviation-geometric return : A stock has had returns of 11 percent, -8 percent, 6 percent, 21 percent, 24 percent, and 16 percent over the last six years. What is the arithmetic return? What is the geometric return for this stock? What is the standard deviation? (use the arithme..
Compute the return on assets and return on equity : Which company is more profitable from the stockholders perspective?
Resident of australia and the income tax consequences : Discuss whether ABC Co is a resident of Australia and the income tax consequences of the above for the year ended 30 June 2015. Support your answer with reference to case law and legislation. Ignore CGT and FBT  implications.
Determine the vertical deflection : A 50-kg traffic signal is suspended by two 21-m cables which have a mass of 1.2 kg per meter of length. Determine the vertical deflection 8 of the junction ring A relative to its position before the signal is added.
Making customized components for system : A few days later a truck from Cool It Airon arrives at Richard's factory. Richard phones up Siobah and says he never agreed to the installation. When Siobah tells him about the fax, he realizes his mistake and tells her that he had sent it by acci..

Reviews

Write a Review

Financial Management Questions & Answers

  Bonds issued elsewhere often have annual coupon payments

Even though most corporate bonds in the United States make coupon payments semi-annually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 25 years to maturity, and a coupon ..

  What is the cross rate between francs and pounds

The exchange rate between the US dollar and the Swiss Franc is SF1.3=$1, and the exchange rate betweent he dollar and the British pound is BP1=$1.40. What is the cross rate between francs and pounds.

  Where technical assets are being so easily replicated

Now are businesses competing with each other in this age where every company uses IT to automate its business processes to sustain in the market and where technical assets are being so easily replicated?

  Understanding of the free cash flow hypothesis

Assess the likelihood that the following firms will be taken over, based upon your understanding of the free cash flow hypothesis.

  How old will your son be when he receives the money

You decide you want your child to be a millionaire. Today you had a son an deposited $50,000 in an investment account that earns 8.5% compounded quarterly. The money in the account will be distributed to your son whenever the total reaches $1,000,000..

  Which liabilities require collateral

Banks must pledge collateral against four different types of liabilities. Which liabilities require collateral, what type of collateral is required, and what impact do the pledging requirements have on a bank's asset liquidity?

  Purchases you will need to make to start your business

You have always wanted to own a restaurant and have now decided to go into business, purchase a building and open an Italian Bistro. The items listed below provide information regarding the purchases you will need to make to start your business. 1. t..

  The bond is a combination of a regular bond

A bond issued by Standard Oil worked as follows. The holder received no interest. At the bond’s maturity the company promised to pay $1,000 plus an additional amount based on the price of oil at that time. The additional amount was equal to the produ..

  Statements reflects the doctrine of pre-emption

Which of the following statements reflects the doctrine of pre-emption?

  What is the after-tax cost to shareholders

In 2012, an employee was granted 305 options on the stock of a firm with an exercise price of $20 per option. In 2013, after the options had vested and when the stock was trading at $35 per share, she exercised the option. The firm's income tax rate ..

  Manufacturing is considering upgrading a piece of equipment

A manufacturing is considering upgrading a piece of equipment. If a certain upgrade helps reduce operating costs by $750 per hour of use, and the upgraded equipment will be used on average 8 hours per day, what is the expected annual savings of upgra..

  What is the firms breakeven point

Flying Bat Corporation is currently planning to start production of boat navigation systems. The firms selling price per unit is $410.58. Variable costs per unit $258.41. Interest expense is running at $50,000 per year, while fixed costs total $422,7..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd