What is the arithmetic average of the returns

Assignment Help Financial Econometrics
Reference no: EM13335102

A stock has annual returns of 13 percent, 21 percent, -12 percent, 7 percent, and -6 percent for the past five years. The arithmetic average of these returns is _____ percent while the geometric average return for the period is _____ percent.

Reference no: EM13335102

Questions Cloud

What would be the advantages if the government eliminated : What would be the advantages if the government eliminated all purchases that are financed by borrowing?
Level of quantitiy where ac attains minimum : For the total cost function given below finc AC,AVC,AFC and MC and the level of quantitiy where AC attains minimum.
Find the separation between adjacent bright fringes : Two slits separated by 0.0530 mm and located 1.60 m from a viewing screen are illuminated with monochromatic light. Find the separation between adjacent bright fringes
Negligence that would be an act of commission : You are to discuss this legal issue and briefly explain what negligence is. Using the Internet find three articles to discuss that exemplify each of the following: Negligence that would be an act of commission
What is the arithmetic average of the returns : A stock has annual returns of 13 percent, 21 percent, -12 percent, 7 percent, and -6 percent for the past five years. The arithmetic average of these returns is _____ percent
Find the distance between the first and second dark fringes : Light of wavelength 4.80 102 nm illuminates a pair of slits separated by 0.270 mm. find the distance between the first and second dark fringes
What is the magnitude of the angular momentum : A sanding disk with rotational inertia I is attached to an electric drill whose motor delivers a torque of magnitude? about the central axis of the disk. what is the magnitude of the angular momentum
What was your total real rate of return on the investment : Suppose you bought a 10 percent coupon bond one year ago for $950. The face value of the bond is $1,000. The bond sells for $985 today. If the inflation rate last year was 9 percent
There are five project management life cycle : There are five Project Management Life Cycle (PMLC) models. Each of these models can be vulnerable in terms of failures and risks. Identify and discuss where, in each of the five PMLC models, you would expect the most failures to occur. What mitigati..

Reviews

Write a Review

Financial Econometrics Questions & Answers

  What is trhe total cost of ordering and carrying inventory

Fisk corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. FIsk anticipates sales of 75,000 units per year, an ordering cost of $8 per order,

  At what constant rate is the stock expected to grow

Rosa Company stock price is $58.88, and recently paid a $2.00 dividend. This dividend is expected to grow by 25% for the next 3 years, then grow forever at a constant rate, g: and r = 12%.

  Explain how to compute cost of new common stock

Expected cash dividends are $3.00, the divedend yield is 4%, flotation costs are 4% of price, and the growth rate is 3%. Compute cost of new common stock.

  Find what rate of return will mr templeton need in order

Franklin Templeton has just invested $9,160 for his son (age one). This money will be used for his son's education 17 years from now. He calculates that he will need $53,882 by the time the boy goes to school.

  Compute bowwows 2010 ending inventory balance

In 2010, the BowWow Company purchased 10,319 units from its supplier at a cost of $112.40 per unit. BowWow sold 14,915 units of its product in 2010 at a price of $21.12 per unit.

  Determine the required return on a stock with a beta

Russo's Gas Distributor, Inc. wants to determine the required return on a stock with a beta coefficient of 0.5. Assuming the risk free rate of 6 percent and the market return of 12 percent, compute the required rate of return.

  What is the discount yield on the commercial paper

You can buy commercial paper of a major U.S. corporation for $975,000. The commercial paper has a face value of $1,000,000 and is 107 days from maturity. What is the discount yield on the commercial paper

  Determine how much are the cash flows today

Your analysis tells you that the appropriate discount rates are 10 percent for the cash flows, and 7 percent for the debt. You currently own 10 percent of the stock. How much are your cash flows today

  What is the sample standard deviation of the above returns

Given that Dov Pharmaceuticals was down by 98% for 2006, why did some investors hold the stock. Why didn't they sell out before the price declined so sharply.

  Determine what inflation rate is expected after year 1

Due to a recession, expected inflation this year is only 3.5%. However, the inflation rate in Year 2 and thereafter is expected to be constant at some level above 3.5%.

  Determine what is the firms debt-equity ratio

Kindle Fire Prevention Corp. has a profit margin of 5.4 percent, total asset turnover of 2.1, and ROE of 19.94 percent. What is this firm's debt-equity ratio

  Find the weighted average cost of capital given the data

Company X is considering changing its capital structure in light of the tough business environment. Currently, Company X's total capital consists of: $950 million in debt

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