A stock had returns of 21.87 % ( 1 year ago), 2.61% (2 years ago), X (3 years ago), and -14.35% (4 years ago) in each of the past years. Over the past 4 years, thegeometric average annual return for the stock was 3.65%. What was the arithmetic average annual return for the stock over the past years?O3.85% (plus or minus 4 bps)4.47% (plus or minus 4 bps)7.76% (plus or minus 4 bps)3.45% (plus or minus 4 bps)None of the above is within 4 bps of the correct answer

The arithmetic average turned out to be approximately 5.33%, which wasn't one of the provided…

Answered: A stock had returns of 21.87 % ( 1 year…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

A stock’s returns for the past 3 years were 10%, 215%, and 35%.What is the historical average return? (10%) What is the historicalsample standard deviation? (25%)
A stock had returns of 13 percent, 11 percent, 8 percent, 14 percent, -9 percent, and -5 percent over the past siX years. What is the geometric average return for this time period? ()5.39% 4.93% 5.13% 5.26% 4.67%
A stock had returns of 15.75 percent, 23.01 percent, −9.82 percent, and 9.49 percent over four of the past five years. The arithmetic average return over the five years was 12.89 percent. What was the stock return for the missing year?
A stock has had the following prices at the end of each year for the last six year : $64.10, $74.05, $67.61, $76.25, $82.70 and $93.15. Over those same six years the dividends were $0.00, $1.10, $1.25, $1.45, $1.60, and $1.75. What is the arithmetic and geometric average return for this stock? pls type in computer!
A stock had returns of 12%, 6%, 13%, -11%, -2% over the past five years. what is the geometric average for this time period?
A stock has had the following prices at the end of each year for the last six year : $64.10, $74.05, $67.61, $76.25, $82.70 and $93.15. Over those same six years the dividends were $0.00, $1.10, $1.25, $1.45, $1.60, and $1.75. What is the arithmetic and geometric average return for this stock?
A stock had returns of 8%, 14%, and 2% for the past three years. Based on these returns, what is the probability that this stock will earn at least 20% in any one given year? A) 0.5% B) 1.0% C)3% D) 5.0% E) 16.0%
A stock has the following returns over a 3 year period: 25%, -4%, 8%. What is this stock's geometric average return over this 3 year period?
Stock ABS has a dividend yield of 1.5 percent. Last year, the stock price fell from P65 to P60. What was the percentage return for the year?
The table given below reports last five years data on annual rates of return (HPYS) on two stocks Year Stock A (%) Stock B (%) 1 16 -10 24 40 30 10 5 -20 20 1. Compute the arithmetic mean of the annual rates of return for both stocks. Which stock is preferable using this measure
A stock has annual returns of 6 percent, 14 percent, -3 percent, and 2 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. 6.33; 6.19 b. 4.57; 4.75 c. 6.19; 6.33 d. 4.75; 4.57
Suppose a stock has generated the following annual returns: 13.6%, -12.1% and 7.6%. What was its compound average annual return? Answer in percent, rounded to two decimal places (e.g., 4.32% = 4.32).

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