What is the arithmetic return for the stock

Assignment Help Financial Management
Reference no: EM13920143

A stock had returns of 20 percent, 12 percent, 14 percent, -10 percent, 16 percent, and 5 percent over the last six years. Required:

(a) What is the arithmetic return for the stock?

(b) What is the geometric return for the stock?

Reference no: EM13920143

Questions Cloud

How should lean production be modified to gain best result : Reduction of inventory without consideration to current operations has been criticized and some finance and accounting departments make inventory and purchasing decisions without really understanding operations. Should lean production be eliminate..
Service-oriented architecture : Services are software that are distinct units of business functionality residing on different parts of a network and can be combined and reused to create business applications (Pearlson & Saunders, pg. 384).
Which is directly lead to unambiguous increase in capability : Which of the following directly leads to an unambiguous increase in the capability index (Cp) of a process (choose all that apply)?
Formulate the null and the alternative hypothesis : Improving the productivity of chickens. Farmers have discovered that more domestic chickens peck at objects placed in their environment, the healthier and more productive the chickens seem to be. White string has been found to be a particularly at..
What is the arithmetic return for the stock : A stock had returns of 20 percent, 12 percent, 14 percent, -10 percent, 16 percent, and 5 percent over the last six years. Required: What is the arithmetic return for the stock? What is the geometric return for the stock?
Case analysis guidelines : Step 1. What are the key issues or problems of the case? Any case may suggest several interpretations of what the focal concerns are. It is helpful to begin by identifying as many different interpretations as possible.
Tasked with evaluating two independent projects : You have been tasked with evaluating two independent projects: a three-year lathe for the shop and a six-year machine press. Are the two estimates equally reliable? Why or why not?
How can the accounting function better serve the needs : How can the accounting function better serve the needs of our value stream teams and manufacturing cells in their efforts to optimize performance?
Find duration of coupon bond making annual coupon payments : Find the duration of a 8% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 7.3%. What is the duration if the yield to maturity is 11.3%? (Do not round intermediate calculations.

Reviews

Write a Review

Financial Management Questions & Answers

  How sensitive is the npv to changes in the quantity sold

Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelly Couts, who inherited the company.  The company originally repaired radios and other household appliances when it was found..

  What is the horizon or terminal value

Hart Enterprises recently paid a dividend, D0, of $3.25. It expects to have nonconstant growth of 15% for 2 years followed by a constant rate of 5% thereafter. The firm's required return is 19%. What is the horizon or terminal value?

  Managements opportunity cost of funds

The ACME Parcel Service is considering the purchase of a delivery truck costing $40,000 and generating cash inflows of $8,000 every year while still in operating condition. If management's opportunity cost of funds is 12 percent, how long must the tr..

  Determine the risk level of the company

Determine the risk level of the company from your investor's pointof view. Indicate key strategies that you may use in order to minimize these perceived risks.

  What is the amount of bid using options contract

What is the amount of bid using Borrowing and Lending, what is the amount of bid using Forward contract and what is the amount of bid using Options contract?

  Fund remain after the necessary fees have been deducted

In a new issue, the ____are those funds that remain after the necessary fees have been deducted

  From a purely financial perspective are there situations

From a purely financial perspective are there situations in which a business would be better off choosing a project with a shorter payback over one that has a larger NPV?

  Tax-related factors considered in evaluating foreign target

Should tax-related factors be considered in evaluating a foreign target? MNCs sometimes measure country risk by assigning weights to factors. The Export-Import Bank of the U.S. offers various programs, including. Spain and South Africa have very diff..

  Create a college savings plan

Create a college savings plan for your 3 year-old son. Assume that he will begin college in 15 years. You plan to pay for 4 years of college at $17,000 per year (tuition is due at the beginning of each year). What will it take to fund it via a lump s..

  Straight supplystraight supply is a main supplier of

straight supplystraight supply is a main supplier of medical components to large pharmaceutical corporations.nbsp

  Expected return-what must expected return on this stock be

A stock has a beta of 1.08, the expected return on the market is 10.2 percent, and the risk-free rate is 4.85 percent.

  Items will lead to a rise in net working capital

Which of the following items will lead to a rise in net working capital?

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