Your stock's returns for the past four years are as follows.   t Return t1 19.79% t2 -0.58% t3 8.55% t4 4.68% Compute the geometric average return for this stock. Please enter your answer as a PERCENT rounded to 2 decimal places.

Q: Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's…

A: The objective of the question is to calculate the average rate of return for Stocks A and B over the…

Q: An analyst gathered the following information for a stock and market parameters: • stock beta =…

A: The Capital Asset Pricing Model (CAPM), which takes into account ongoing testing and research, is a…

Q: If the return on stock A in year 1 was 11 %, in year 2 was 19 %, in year 3 was 4 % and in year 4 was…

A: Financial management consists of directing, planning, organizing and controlling of financial…

Q: A stock has had the following year-end prices and dividends: Year Price Dividend 1 $ 64.23271.10…

A: Here are the arithmetic and geometric returns for the stock:YearArithmetic Return…

Q: A stock has had the following year-end prices and dividends: Year Price Dividend $ 1 43.27 23456 2…

A: Returns refer to the income earned by the investor through an investment in a particular holding…

Q: You own a stock that had returns of 10.09 percent, −7.08 percent, 23.22 percent, and 15.73 percent…

A: Stock return in Year 1 (R1) = 10.09% Stock return in Year 2 (R2) = -7.08% Stock return in Year 3…

Q: A stock has had returns of -5.32 percent, -7.58 percent, 4.68 percent, 7.7 percent, 8.98 percent,…

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

Q: Given the following information, determine the beta coefficient for Stock L that is consistent with…

A: Given: Required returnr=8%Risk free raterRF=3%Market returnrM=12%

Q: Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns,…

A: Here,YearStock A's ReturnStock B's…

Q: Stock Z has the following returns for last five years. Calculate the arithmetic average return and…

A: Arithmetic Average Return refers to the concept which is appropriate for a shorter period of time.…

Q: each stock. Which stock is most desirable according to this measure? (b) Compute the standard…

A: (Since you have posted multiple sub-part questions, we will solve the first three questions for you.…

Q: A stock has had the following year-end prices and dividends: Year 1 Price $64.68 2 3 71.55 77.35…

A: Calculation of arithmetic and geometric mean:Excel working with formula:

Q: Use the information below to compute the exepected retun of XYZ stock.                    Market…

A: First, we need to calculate the return for each market state. The return is calculated as the final…

Q: Given the following information, determine the beta coefficient for Stock L that is consistent with…

A: According to capital asset pricing model Expected return on stock = Risk free rate+Beta×Market…

Q: A stock has had returns of 21 percent, 13 percent, 8 percent, -11 percent, -3 percent, and 17…

A: The return on stock refers to the profit that the stock provides to the investor for their…

Q: Suppose a stock has generated the following annual returns: 13.6%, -12.1% and 7.6%. What was its…

A: Annual returns are as follows13.6%-12.1%7.6%

Q: Based on the following information: State of Economy Probability of State of Economy Return on Stock…

A: a. Expected Returns Calculation for Stock J and Stock K: To calculate the expected returns, we use…

Q: A stock has an average annual historical return of 6.03 percent and a standard deviation of 6.81…

A: Normal distribution curve is a bell shaped symmetric curve where the mean value remains at the…

Q: Using the data in the following table, estimate the average return and volatility for each stock.…

A: Step 1: Calculate the average return for each stock. For the average return, we must add all of the…

Q: 1. A stock has had the following year-end prices and dividends: Year 1 2 3 4 5 6 Price ($) 93.75…

A: Average return:A financial term known as the average return measures the typical profit or loss on…

Q: A stock has had the following year-end prices and dividends: Year Price $65.03 123456 71.90 77.70…

A: Here,

Q: A stock has had the following year-end prices and dividends: Year 6723456 1 Price $ 65.08 Dividend…

A: The arithmetic average return is the simple average of all returns. The geometric rate of return is…

Q: Given the following information, determine the beta coefficient for Stock L that is consistent with…

A: Given: Return = 8% Risk free rate (rRF )= 3% Market rate (rM) = 12%.

Q: Fill in the missing information in the following table. Assume that Portfolio AB is 60 percent…

A: The objective of the question is to calculate the annual returns for Portfolio AB for the years 2006…

Q: Suppose a stock has generated the following annual returns: 11.4%, -7.9% and 5.4%. What was its…

A: Here,Annual Return are as follows:11.4%-7.9%5.4%

Q: You are given the following probability distribution of returns for a stock. Use the data to…

A: State of EconomyProbability (A)Estimated return…

Q: You find a certain stock that had returns of 15 percent, -17 percent, 23 percent, and 11 percent for…

A: Standard deviation is computed by following formula-Standard deviation = WhereR = return of stock N…

Q: Arithmetic average return Geometric average return % olo olo %

A: Return 1 = r1 = 39.50%/100 = 0.3950 in decimalReturn 2 = r2 = 23.50%/100 = 0.2350 in decimalReturn 3…

Q: Consider the three stocks in the following table. Pt represents price at time t, and ot represents…

A: Price-weighted index refers to the index in the stock market which is used for weighting the…

Q: Given the following information, determine the beta coefficient for Stock L that is consistent with…

A: Given: Expected return = 13.75% Risk free rate = 5.85% Market rate = 11.5%

Q: a. Calculate the arithmetic average return for the period 2018 to 2021 to Percentage Return).

A: The average return is the basic mathematical average of a series of returns over a certain time…

Q: geometric

A: Introduction: The term geometric mean refers to investment's average growth. In other words it is…

Q: A stock has had the following year-end prices and dividends:   Year Price Dividend 1 $…

A: Solution Arithmetic Average Return = 9.57% Geometric Average Return = 8.41% Explanation:Step 1:Year…

Q: A stock has the following returns over a 3 year period: 25%, -4%, 8%. What is this stock's geometric…

A: Geometric Average Return is the actual annual return of an investment earned during a certain period…

Q: Given the following information, determine the beta coefficient for Stock L that is consistent with…

A: The provided information are: Expected returnrL=8%=0.08Risk-free raterRF=3%=0.03Market…

Q: Calculate the upper bound to the 95th confidence interval given the following price and dividend…

A: Price                      Dividend       Dividend Yield$ 64.65                    $1.72…

Q: A stock has had the following year-end prices and dividends: Year 0 1 234 LO 5 Price $ 32.5 34.68…

A: Arithmetic is the simplest form of calculating the average rate of return from the series of…

Q: An analyst gathered the following information for a stock and market parameters: stock beta = 1.42;…

A: The Capital Asset Pricing Model (CAPM), which takes into account ongoing testing and research, is a…

Q: A stock has had the following year-end prices and dividends: Year 1 Price Dividend $ 43.41 2 48.39…

A: Step 1: Calculate the Holding Period Returns (HPR) for Each YearTo find the returns for each year,…

Q: stock has had returns of -7.77 percent, -4.59 percent, 5.87 percent, 9.98 percent, 8.7 percent, and…

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

Q: The index model has been estimated from the excess returns for stock A with the following results:…

A: RA12.00%+1.55Rm+eAσM24.00%σ(eA)18.50%

Q: A stock had the following year-end prices and dividends. What is the geometric average annual return…

A: Geometric mean is a measure of central tendency which means it reflects the value that defines and…

Q: What are the arithmetic and geometric returns for the stock?

A: Arithmetic and Geometric mean are used to calculate the expected mean of the stock Arithmetic Mean…

Q: Given the following information, determine the beta coefficient for Stock L that is consistent with…

A: Given: rL = 8%, rRf = 3%, rm = 12%

Q: A stock has had the following year-end prices and dividends: Price $ 64.63 71.50 77.30 63.57 73.71…

A: Rate of Return = (Ending Price + Dividend - Beginning Price) / Beginning PriceArithmetic Average…

Q: A stock has had returns of 16.72 percent, 12.20 percent, 5.90 percent, 26.86 percent, and −13.49…

A: r1 = 0.1672 r2 = 0.1220 r3 = 0.0590 r4 = 0.2686 r5 = - 0.1349 Number of returns (n) = 5

Q: Use the portion of the stock table shown below to answer the questions that follow. Round dollar…

A: loss= sale price - purchase price

Q: An analyst gathered the following information for a stock and market parameters: stock beta= 1.08; •…

A: The possible remuneration that will be provided to the stockholders for the upcoming year in the…