Question

In: Finance

Consider the following five monthly returns: 5% −2% 4% 8% −1% a. Calculate the arithmetic average...

Consider the following five monthly returns:

5%

−2%

4%

8%

−1%

a. Calculate the arithmetic average monthly return over this period and express your answer as a percentage per month.

b. Calculate the geometric average monthly return over this period.

c. Calculate the monthly variance over this period.

d. Calculate the monthly standard deviation over this period.

Expert Solution

a.

Arithmetic average monthly return over this period is calculated in excel and screen shot provided below:

arithmetic average monthly return over this period is 2.50%.

b.

Geometric average monthly return over this period is calculated in excel and screen shot provided below:

Geometric average monthly return over this period is 2.42%.

c.

Monthly variance over this period is calculated in excel and screen shot provided below:

monthly variance over this period is 0.23%.

d.

Monthly standard deviation over this period is calculated in excel and screen shot provided below:

monthly standard deviation over this period is 4.80%.

jeff jeffy answered 1 year ago

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Question

Consider the following five monthly returns: 5% −2% 4% 8% −1% a. Calculate the arithmetic average...

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Expert Solution

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