Question

In: Finance

What are the arithmetic and geometric average returns for a Property D with annual returns of...

What are the arithmetic and geometric average returns for a Property D with annual returns of 11 percent, 14 percent, -2 percent and 6 percent?
  • A. 7.25%; 7.08%
  • B. 8.25%; 7.89%
  • C. 8.25%; 8.15%
  • D. 7.25%; 7.37%
  • E. 7.25%; 8.15%

Solutions

Expert Solution

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Using the following returns, calculate the arithmetic average returns, the standard deviations, and the geometric average...
Using the following returns, calculate the arithmetic average returns, the standard deviations, and the geometric average returns for the stock A, B, and C. Assume the returns of stocks are normally distributed. If Mr. Wong owns a stock C, based on the historical return data, there is only a 2.5 percent chance that the stock C will produce a return less than _____ percent in any one year.   If Mr. Wong owns a stock B, which range of returns would...
Using the following returns, calculate the arithmetic average returns, the standard deviations, and the geometric average...
Using the following returns, calculate the arithmetic average returns, the standard deviations, and the geometric average returns for the stock A, B, and C. Assume the returns of stocks are normally distributed. If Mr. WENG owns a stock C, based on the historical return data, there is only a 2.5 percent chance that the stock C will produce a return less than _____ percent in any one year.   If Mr. WENG owns a stock B, which range of returns would...
Calculate annual arithmetic rate of return and annual geometric rate of return of stock A and...
Calculate annual arithmetic rate of return and annual geometric rate of return of stock A and B. Consider the data in table below, which show the movements in price for two stocks over two successive holding periods. Both stocks have a beginning price of $10. Stock A rises to $40 in period 1 and then declines to $30 in period 2. Stock B falls to $8 in period 1 and then rises to $25 in period 2.
Given the following price and dividend information, calculate the arithmetic average return, the geometric average return,...
Given the following price and dividend information, calculate the arithmetic average return, the geometric average return, the sample variance and the sample standard deviation for the returns, holding period return, the $1 invested equivalent, the probability of losing money, the upper bound to the 95th confidence interval, the lower bound to the 99th confidence interval, the lower bound to the 68th confidence interval. (Enter percentages as decimals and round to 4 decimals) Year Price Dividend 0 50.72    1 43.54...
What's the difference between the arithmetic and geometric average return (conceptually, not mathematically), and when is...
What's the difference between the arithmetic and geometric average return (conceptually, not mathematically), and when is it best to use each?
(Calculating the geometric and arithmetic average rate of​ return)  The common stock of the Brangus Cattle...
(Calculating the geometric and arithmetic average rate of​ return)  The common stock of the Brangus Cattle Company had the following​ end-of-year stock prices over the last five years and paid no cash​ dividends: Time Brangus cattle Comapny 1 ​$1313 2 99 3 1111 4 2323 5 2929 a.  Calculate the annual rate of return for each year from the above information. b.  What is the arithmetic average rate of return earned by investing in Brangus Cattle​ Company's stock over this​...
The following stock prices pertain to Tesla (TSLA). Calculate the arithmetic and geometric returns from 2010...
The following stock prices pertain to Tesla (TSLA). Calculate the arithmetic and geometric returns from 2010 to 2019. Complete chart to help with problem . 2010 $ 4.82 2011 $ 5.81 2012 $ 7.51 2013 $ 36.28 2014 $ 40.72 2015 $ 38.24 2016 $ 50.38 2017 $ 70.86 2018 $ 61.40 2019 $130.11 A. Calculate the arithmetic average annual return for Tesla from 2010 through 2019. B. Calculate the geometric average annual return for Tesla from 2010 through 2019.
Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for...
Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1 11 % 23 % 2 29 44 3 18 -11 4 -19 -25 5 20 52 Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y.    Returns Year X Y 1 11 %     23 %     2 29         44         3 18         -11...
Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for...
Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1 11 % 23 % 2 29 44 3 18 -11 4 -19 -25 5 20 52 Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y.    Returns Year X Y 1 11 %     23 %     2 29         44         3 18         -11...
Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for...
Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y.    Returns Year X Y 1 15 %     22 %     2 33         43         3 22         -9         4 -23         -23         5 24         51    Calculate the arithmetic average return for X.     Calculate the arithmetic average return for Y.    Calculate the variance for X.     Calculate the variance for Y.    Calculate...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT