Geometric average return for the period

Assignment Help Financial Management

Reference no: EM13946929

A stock has annual returns of 5.4 percent, 12.9 percent, -3.8 percent, and 9.4 percent for the past four years. The arithmetic average of these returns is _____ percent while the geometric average return for the period is _____ percent.

A. 4.57; 4.75

B. 5.98; 5.79

C. 6.33; 6.11

D. 5.98; 6.11

E. 6.33; 6.33

Reference no: EM13946929

Questions Cloud

Consider the prevailing conditions : Consider the prevailing conditions that could affect the demand for stocks, including inflation, the economy, the budget deficit, national debt, and the Fed’s monetary policy, political conditions, and the general mood of investors. Based on these pr..

What would risk-free rate-two stocks to be correctly priced : Stock Y has a beta of 1.0 and an expected return of 13.5 percent. Stock Z has a beta of .6 and an expected return of 9 percent. What would the risk-free rate have to be for the two stocks to be correctly priced?

Car payment is interest expense : You borrow $78,000 to purchase a new car. The dealership offers you a 7% APR for 5 years. how much of your first car payment is interest expense? Explain how you found your answer.

Results of a financial planning model indicate : A firm's goal is to maintain a 75% debt-equity ratio. How much equity would be required if the results of a financial planning model indicate that the firm's assets will grow to $4 million?

Geometric average return for the period : A stock has annual returns of 5.4 percent, 12.9 percent, -3.8 percent, and 9.4 percent for the past four years. The arithmetic average of these returns is _____ percent while the geometric average return for the period is _____ percent.

What would her percentage return be in load fund return case : Alex invested $9,530 in a mutual fund at a time when the price per share was $10. The fund has a load fee of $50. How many shares did she purchase? Alex later sells her shares in the mutual fund for $12 per share. What would her percentage return be ..

Retaining a debt-equity ratio : If the pro forma balance sheet shows that total assets must increase by $400,000 while retaining a debt-equity ratio of .75 then:

What is the expense ratio for mutual fund : Avery owns a mutual fund with a NAV of $38.00 per share and expenses of $1.50 per share. What is the expense ratio for Avery's mutual fund? Jo purchased 375 shares of a no-load stock mutual fund. During the year she received $3 per share in dividend ..

Use the data from firms pro forma-projected or forecasted : Use the following data from a firm's pro forma (i.e., projected or forecasted) financial statements to calculate the following profitability ratios for the firm, assuming that all stocks are common stocks: (a) net profit margin; (b) return on total a..

User Account

All Pages