Compute what is the expected return of the stock in the year

Assignment Help Financial Accounting
Reference no: EM132964504

In the past four years, the annual returns of one company's stock are 12%, 18%, and -14%, and 7%.

Problem a) What is the geometric average return?

Problem b) What is the arithmetic average of the returns?

Problem c) According to an economist' forecast on the Year 2020, the probabilities of repeating the performances of the former four years are 30%, 30%, 20%, and 20%, respectively. What is the expected return of the stock in the Year 2020?

Reference no: EM132964504

Questions Cloud

Should the firm accept or reject the project : Determine the payback period, discounted payback period, NPV, PI, IRR, and MIRR of the new line of candies. Should the firm accept or reject the project?
Question of advertising and marketing : The question of advertising and marketing to children has produced at least two schools of thought. There are some who believe that the advertising and marketin
What the fra would be settled by : What the FRA would be settled by? XYZ entered into a 3x9 forward rate agreement with a financial institution. As per the agreement.
Determine the total present value of the note receivable : The fair value of the land at the date of sale was P4,000,000. Determine the total present value of the note receivable on December 31, 2021
Compute what is the expected return of the stock in the year : In the past four years, the annual returns of one company's stock are 12%, 18%, and -14%, and 7%. What is the expected return of the stock in the Year 2020?
Confidence interval to estimate the mean : A researcher is interested in estimating the mean weight of a semi tracker truck to determine the potential load capacity. She takes a random sample of 17 truck
How can the organization ensure that ci : How can the organization ensure that their CI (Competitive Intelligence) practices are legal and ethical?
How much mary will get when deposit matures after two years : How much Mary will get when the deposit matures after two years, when the interest payment frequencies per year are 1, 2, and 4 times, respectively?
What is the current share price of the stock : DBP Inc. just paid a dividend of $2.45. The expected growth rate of dividend is 5 percent. What is the current share price of the stock

Reviews

Write a Review

Financial Accounting Questions & Answers

  What the estimated inventory amount is

What The estimated inventory amount is? The current assets of Cannon Enterprise consists of cash, accounts receivable, and inventory

  What is the forecasted inventory

Assuming the company will have the same inventory days in 2018 and 2019. What is the forecasted inventory in 2019 based on the information?

  Determine the balance in retained earnings at january

Determine the balance in retained earnings at January 2017 as Batali reported using FIFO method and determine the adjustment of balance in retained earnings

  How pressure exerted on senior management

Describe how pressure exerted on senior management by shareholders and other parties may impact the accuracy of financial statements

  What was the total amount of sales tax collected

What was the total amount of sales tax collected in 2018? November was the first month of operations. Sales tax is collected at the time of sale but is not paid

  Prepare entry on avalons books related to the transaction

On July 4, Avalon Restaurant accepts a Visa card for a $200 dinner bill. Visa charges a 3% service fee. Prepare the entry on Avalon's books related to this transaction.

  How to account for new and unusual financial transactions

Documents that comprise GAAP, provides a consensus on how to account for new and unusual financial transactions?

  What bremmer based parent company should convert

Bremmer Company's functional currency, What Bremmer's U.S. based parent company should convert Bremmer's financial statement amount to U.S dollars using the?

  What the contingency should be reported

The amount of compensation is less than the fair market value but exceeds the carrying amount of the plant. The contingency should be reported

  Amount of installment accounts receivable

What amount of installment accounts receivable should Dolce report in its December 31, year 2 balance sheet?

  What will place pressure on the value of the us dollar

Assume that the inflation rate becomes much higher in the U.S. relative to the U.K. What will place pressure on the value of the U.S. dollar

  What is sand fcf

Sand 5th Avenue's Free Cash Flow (FCF), Sand has no depreciable assets. Assuming a tax rate of 50 percent, what is Sand's FCF for 2020?

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