What is the arithmetic average return for these three years

Assignment Help Financial Management
Reference no: EM131996476

Stock A exhibits the following yearly returns: Year 1 = 30%; Year 2 = -40%; Year 3 = 30%.

A) What is the arithmetic average return for these three years?

B) What is the geometric average return during these three years

ANswer A:

Answer B:

Reference no: EM131996476

Questions Cloud

Make up own lottery problem : Make up your own lottery problem where given numbers (digits) are drawn and all n numbers must exist for a win.
Difference between the proportion of males and females : Is there evidence of a significant difference between the proportion of males and females who say they buy clothing from their mobile devices at the 0.005 level
Prepare the journal entries on first trust books on december : Vargo Corp. owes $308,000 to First Trust. The debt is a 10-year, Prepare the journal entries on First Trust's books on December 31, 2014, 2015, 2016
Calculate the intrinsic value of the call option : A stock is currently selling for $76 per share. You could purchase a call with a strike price of $70 for $8.
What is the arithmetic average return for these three years : Stock A exhibits the following yearly returns: Year 1 = 30%; Year 2 = -40%; Year 3 = 30%.What is the arithmetic average return for these three years?
Find the? p-value at an? alpha-level of alpha : Find the? p-value at an? alpha-level of alpha equals 0.01.
Is there any arbitrage opportunities exist : Is there any arbitrage opportunities exist? If so, what are your arbitrage strategy and your profit in three months?
Evidence to support the claim : A professor claims that the average of scores obtained by Mathematics majors is close to the average of scores obtained by the Computer Science majors.
What is the market risk premium : The returns on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 an

Reviews

Write a Review

Financial Management Questions & Answers

  What was his total return for this investment

Three years ago, James Matheson bought 260 shares of a mutual fund for $29 a share. What was his total return for this investment?

  Handle adversity and restore confidence

Did the company succeed in showing that it could handle adversity and restore confidence?

  What is the annual total costs of post card inventory

What is the annual total costs of post card inventory?

  What is the ear that he expects to earn

If he currently has 6,419 dollars and expects to have 39,715.75 dollars in 2 years from today, then what is the EAR that he expects to earn?

  What is amount of his depreciation deduction for equipment

James purchased office equipment for his business. The equipment has a depreciable basis of $14,000 and was put in service on June 1, 2014. James decided to elect straight-line depreciation under MARCS for the asset over the minimum number of years (..

  Standard deviation of return on the optimal risky portfolio

The risk-free rate of return is 2%. The standard deviation of return on the optimal risky portfolio is _________.

  Present worth of software maintenance cost

A company wants to know the present worth of a software maintenance cost of $2,000 per year starting next year and expected to increase by 8.5% each year compounded interest for the next 7 years. What type of problem would this be for the engineer wh..

  What is the critical marginal tax rate

A taxable issue yields 5.9 percent, and a similar municipal issue yields 4.4 percent. What is the critical marginal tax rate?

  Calculate vintages return on equity

Vintage, Inc. has a total asset turnover of 3.09 and a net profit margin of 24.91 percent. The total asset to equity ratio for the firm is 1.97. Calculate Vintage’s return on equity

  Why cash flow is more important than sales in a business

Describe why cash flow is more important than sales in a business. Indicate the various aspects of finance that management must understand.

  What is the modified net present value for expansion project

What is the Modified Net Present Value ( MNPV ) for the expansion project?

  What is the price-weighted return for the index

Assume the following information concerning two stocks that make up an index. What is the price-weighted return for the index?

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