What are arithmetic and geometric average returns for stock

Assignment Help Financial Management
Reference no: EM13947180

What are the arithmetic and geometric average returns for a stock with annual returns of 21 percent, 9 percent, –2 percent, and 13 percent? List the arithmetic answer first.

11.04 percent; 10.25 percent

11.04 percent; 9.93 percent

10.25 percent; 11.04 percent

10.25 percent; 9.93 percent

9.93 percent; 10.25 percent

Reference no: EM13947180

Questions Cloud

Merger valuation-shares outstanding-target capital structure : Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt. Vandell's debt interest rate is 7%. Assume that the risk-free rate of interest is 6% ..
Unsophisticated capital budgeting techniques : Unsophisticated capital budgeting techniques do not: a. examine the size of the initial outlay b. take into account unconventional cash flow patters c. explicitly consider the time value of money d. use net profits as a measure of return
What is the value of the unlevered firm and tax shield : Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt; its beta is 1.25. Vandell's debt interest rate is 7.9%. What is the value of the unle..
What is the bonds coupon rate : Cranston Industries just issued $1,000 par 30-year bonds. The bonds sold for $1,107.20 and pay interest semi-annually. Investors require a rate of 7.75% on the bonds. What is the bonds' coupon rate?
What are arithmetic and geometric average returns for stock : What are the arithmetic and geometric average returns for a stock with annual returns of 21 percent, 9 percent, –2 percent, and 13 percent? List the arithmetic answer first.
By using dollar cost averaging : By using dollar cost averaging
Federal income tax on investment income and capital gains : Federal income tax on investment income and capital gains of a mutual fund
Portfolio return-mutual fund is greater than market return : If the portfolio return on a mutual fund is greater than the market return, but the Sharpe and Treynor measures are equal, then the fund manager's performance is
Actually be worse than a return : A return of 15 percent might actually be worse than a return of 10 percent.

Reviews

Write a Review

Financial Management Questions & Answers

  A project that provides annual cash flows

A project that provides annual cash flows of $17,300 for nine years costs $79,000 today. What is the NPV for the project if the required return is 8 percent?

  What would be the marginal tax rate on the extra income

Leonardo, who is married but files separately, earns $80,000 of taxable income. He also has $15,000 in city of Tulsa bonds. His wife, Theresa, earns $50,000 of taxable income. If Leonardo earned an additional $30,000 of taxable income this year, what..

  What is probability-annual return on small-company stocks

Assume that annual returns on small-company stocks are normally distributed with an average historical return of 17.1% and a standard deviation of 32.6%. What is the probability that annual return on small-company stocks is positive? Show all work.

  Variable cost per unit projection for a project

Les is concerned that his variable cost per unit projection for a project may not be reliable. Which type of analysis will help him determine the effect that an incorrect variable cost estimate will have on the final outcome of the project?

  Market rate of return on similar securities

Apple currently does not pay a dividend and they have announced to the market that they will not pay a dividend for the next ten years. However, analysts expect that they will pay their first dividend of $1.89 in eleven years and they feel that the c..

  About a firms cost of debt

Which of the following is generally true about a firm's cost of debt?

  How should depreciation of a firms home currency affect

Currency effects on cash flows. How should appreciation of a firm's home currency generally affect its cash inflows? How should depreciation of a firm's home currency generally affect its cash outflows?

  The dividends are anticipated to maintain a growth rate

The next dividend payment by Halestorm, Inc., will be $2.12 per share. The dividends are anticipated to maintain a growth rate of 8 percent forever. If the stock currently sells for $43 per share, what is the required return?

  What is the expected return for the project

What is the expected return for the project? If the required rate of return is 13%, should they proceed with the project? Why? Does this mean Project B is automatically eliminated from consideration?

  What is the beta of stock the returns of the market

What is the beta of Stock A given the following returns of the market and Stock A in two states of the economy? Market Return (%), State of the Economy, Normal 15%, Recession 5%. Stock A Return (%), State of Economy, Normal 20%, and Recession 6%.

  Many americans feel that their jobs at home should be

many americans feel that their jobs at home should be protected and that free trade should be limited. however global

  What is the future value of annuity payment

What is the future value of a $810 annuity payment over four years if interest rates are 8 percent?

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