9.7% 10.7% 70.3% 13.0% 23.1% 2 1.1% 23.4% -54.0% 15.2% -16.0% 3 -38.9% -32.1% 40.2% -40.0% 0.8% 4 34.5% 26.3% 94.5% 57.2% 13.7% 5 14.6% 11.8% 7.3% -4.2% 41.3% 6 3.7% 1.9% 25.5% 3.9% 5.7% Geometric mean equals 10.0%; arithmetic mean equals 11.4% Arithmetic mean equals 7.0%; geometric mean equals 4.9% Arithmetic mean equals 7.5%; geometric mean equals 5.6% Geometric mean equals 6.5%; arithmetic mean
9.7% 10.7% 70.3% 13.0% 23.1% 2 1.1% 23.4% -54.0% 15.2% -16.0% 3 -38.9% -32.1% 40.2% -40.0% 0.8% 4 34.5% 26.3% 94.5% 57.2% 13.7% 5 14.6% 11.8% 7.3% -4.2% 41.3% 6 3.7% 1.9% 25.5% 3.9% 5.7% Geometric mean equals 10.0%; arithmetic mean equals 11.4% Arithmetic mean equals 7.0%; geometric mean equals 4.9% Arithmetic mean equals 7.5%; geometric mean equals 5.6% Geometric mean equals 6.5%; arithmetic mean
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
Related questions
Question
Calculate arithmetic and geometric means for stock B:
|
Year |
A |
B |
C |
D |
E |
|
1 |
9.7% |
10.7% |
70.3% |
13.0% |
23.1% |
|
2 |
1.1% |
23.4% |
-54.0% |
15.2% |
-16.0% |
|
3 |
-38.9% |
-32.1% |
40.2% |
-40.0% |
0.8% |
|
4 |
34.5% |
26.3% |
94.5% |
57.2% |
13.7% |
|
5 |
14.6% |
11.8% |
7.3% |
-4.2% |
41.3% |
|
6 |
3.7% |
1.9% |
25.5% |
3.9% |
5.7% |
|
Geometric mean equals 10.0%; arithmetic mean equals 11.4% |
||
|
Arithmetic mean equals 7.0%; geometric mean equals 4.9% |
||
|
Arithmetic mean equals 7.5%; geometric mean equals 5.6% |
||
|
Geometric mean equals 6.5%; arithmetic mean equals 4.9% |
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