You have followed TSLA over the last 2 years, and have compiled the following price data for the most recent 6 months. The prices are as of the closing of the market at the end of the month. (Ignore calendar date.) Date Pt rt 8/1/2020 $ 498.32 74.15% 7/1/2020 $ 286.15 6/1/2020 $ 215.96 5/1/2020 $ 167.00 4/1/2020 $ 156.38 3/1/2020 $ 104.80 2/1/2020 $ 133.60 1. Find monthly returns in (a) through ((Answer must be in %. Use 2 decimals places.) LLLLL

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
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QUESTION 16
You have followed TSLA over the last 2 years, and have compiled the following price data
for the most recent 6 months. The prices are as of the closing of the market at the end of the
month. (Ignore calendar date.)
田
Date
Pt
rt
8/1/2020 $ 498.32
74.15%
7/1/2020 $ 286.15
6/1/2020 $ 215.96
5/1/2020 $ 167.00
4/1/2020 $ 156.38
3/1/2020 $ 104.80
2/1/2020 $ 133.60
1.
Find monthly returns in (a) through ((Answer must be in %. Use 2 decimals places.)
Transcribed Image Text:QUESTION 16 You have followed TSLA over the last 2 years, and have compiled the following price data for the most recent 6 months. The prices are as of the closing of the market at the end of the month. (Ignore calendar date.) 田 Date Pt rt 8/1/2020 $ 498.32 74.15% 7/1/2020 $ 286.15 6/1/2020 $ 215.96 5/1/2020 $ 167.00 4/1/2020 $ 156.38 3/1/2020 $ 104.80 2/1/2020 $ 133.60 1. Find monthly returns in (a) through ((Answer must be in %. Use 2 decimals places.)
QUESTION 14
In dealing with the price data and returns data of an asset over time - i.e. historical data, what is an appropriate measure of AVG return?
O Arithmetic AVG
O Geometric AVG
O Weighted AVG (WAVG)
O Simple AVG
QUESTION 15
Under what circumstance is it appropriate to use geometric AVG?
O a. If the observed data is historical and there exists a compounding effect throughout the data over time.
O b. If the observed data is cross-sectional and there exists no compounding effect throughout the data over time.
O c. If the observed data is historical and there exists no compounding effect throughout the data over time.
O d. If the observed data is cross-sectional and there exists a compounding effect throughout the data over time
47
Transcribed Image Text:QUESTION 14 In dealing with the price data and returns data of an asset over time - i.e. historical data, what is an appropriate measure of AVG return? O Arithmetic AVG O Geometric AVG O Weighted AVG (WAVG) O Simple AVG QUESTION 15 Under what circumstance is it appropriate to use geometric AVG? O a. If the observed data is historical and there exists a compounding effect throughout the data over time. O b. If the observed data is cross-sectional and there exists no compounding effect throughout the data over time. O c. If the observed data is historical and there exists no compounding effect throughout the data over time. O d. If the observed data is cross-sectional and there exists a compounding effect throughout the data over time 47
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