A stock has had returns of -5.32 percent, -7.58 percent, 4.68 percent, 7.7 percent, 8.98 percent, and10.04 percent over the last six years. What is the geometric average return for the stock? Answer as apercentage to two decimals (if you get -0.0435, you should answer -4.35).

The below expression can be used to calculate geometric average return:

Answered: A stock has had returns of -5.32…

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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A stock will pay a dividend of $3.5 and is expected to sell for $87.8 in one year. If the current price is$19.4, what is the return. Answer as a percent. Answer:
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How can I calculate geometric average in Excel?
A stock has had the following year-end prices and dividends: Year 1 2355N 4 6 Price $ 64.63 71.50 77.30 63.57 73.71 82.75 Dividend Arithmetic average return Geometric average return $.66 .71 .77 .86 .93 What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. % %
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An analyst gathered the following information for a stock and market parameters: stock beta= 1.08; • expected return on the Market = 11.97%; • expected return on T-bills = 1.55%; • current stock Price = $9.01; • expected stock price in one year = $11.14; • expected dividend payment next year = $3.23. Calculate the expected return for this stock. Please share your answer as a percentage rounded to 2 decimal places.
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A stock has had returns of -5.32 percent, -7.58 percent, 4.68 percent, 7.7 percent, 8.98 percent, and 10.04 percent over the last six years. What is the geometric average return for the stock? Answer as a percentage to two decimals (if you get -0.0435, you should answer -4.35).