A stock has had returns of 2 percent, -6 percent, 1 percent, -2 percent, and 5 percent over the last five years. What is the geometric average return over this period?   Question 11 options:   1.39%   2.12%   -0.07%   -0.25%   -6.18%

Q: Suppose a stock had an initial price of $57 per share, paid a dividend of $1.00 per share during the…

A: To calculate the percentage return we will use the below formula   Percentage return =…

Q: A stock has had the following year-end prices and dividends: Year 1 2 3 4 5 6 Price $64.58 71.45…

A: Year Price (a)Dividend (b)Annual return…

Q: What was the risk premium on common stock in each year? What was the average risk premium? What was…

A: Risk premium is the excess return over the risk free rate. This can be computed with the formula…

Q: A stock had returns of 14 percent, 13 percent, −10 percent, and 7 percent for the past four years.…

A: Range of stock refers to the stock price which defines the starting and ending price in a specified…

Q: Returns on stocks X and Y are listed below: Period 1 2 3 4 5 6 7 Stock X -1% -1% 9% 9% 1% -2% 5%…

A: Here, PeriodStock XStock…

Q: Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock Market…

A: The risk premium is referred to as the difference between the market return and the risk-free…

Q: A stock had returns of 17.48 percent, -4.92 percent, 20.15 percent, and 8.45 percent for the past…

A: The objective of the question is to calculate the average return of a stock over the past four…

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: s. What is the geometric average return for this time period?

A: Geometric Average: It is the average return for a set of values computed with the products of the…

Q: You have the following price for a stock for several recent years. Assume that the stock F year…

A: Here, F year               Begining of year price                   # of shares bought or sold 2005…

Q: Review the following market information: Current Stock Market Return                    11.25%…

A: The required return is the minimum return an investor expects from a stock. It is calculated by the…

Q: A stock has had returns of 25 percent, 12 percent, 6 percent, –17 percent, -6 percent, and 22…

A: Arithmetic Return: It is the total return of the stock that is divided by total number of years. It…

Q: A stock had returns of 2 percent, 1.4 percent, -4.2 percent, 5.8 percent, -9.9 percent, and 17.8…

A: To calculate the arithmetic average return we will use the below formula   Arithmetic average return…

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: What is the expected return for the following portfolio? (State your answer in percent with two…

A: Expected return of portfolio comprising of multiple different securities is computed as…

Q: d. If you were equally likely to earn a return of 22 %, 10 % , 19 %, 3%, or 1% in each year (these…

A: Returns refer to the income earned by the investor for a specific period, it takes into account the…

Q: Stock X, Stock Y, and the market have had the following returns over the past four years. Year 2018…

A: Required return: It refers to the return that is received by an investor on his investment. It is…

Q: A stock has had the following year-end prices and dividends: Year Price Dividend 1 $ 64.78 — 2…

A: Year Price Dividend 1  $ 64.78   2  $ 71.65  $      0.69 3  $ 77.45  $      0.74 4  $ 63.72…

Q: Assume these are the stock market and Treasury bill returns for a 5-year period: T-Bill Return Year…

A: YearStock market returnT-bill…

Q: The figure in the popup window.. shows the one-year return distribution for RCS stock. Calcula a.…

A: The expected return of a probability distribution is the sum product of probability with its…

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: Over the last five years, the price of stock A has been changing as follows. What should be the…

A: Solution:Geometric rate of return means the rate of overall rate of return computed in terms of per…

Q: The beginning share price for a security over a three-year period was $100. Subsequent year-end…

A: Given information: In this question, the prices of a security are given in the question for 4 years.…

Q: 20. Arithmetic and Geometric Returns A stock has had returns of –26 percent, 12 percent, 34 percent,…

A: The arithmetic mean is the average of a series of numbers whose sum is divided by the total count of…

Q: A stock has had the following year-end prices and dividends: Year Price Dividend $16.25 1 18.43 $…

A: Geometric return is annualized return found by taking individual return. This return is calculated…

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: A stock had returns of 18.94 percent, 22.58 percent, -15.98 percent, 9.38 percent, and 28.45 percent…

A: Average return=Sum of Returns / Number of returns

Q: You are considering an investment in either individual stocks or a portfolio of stocks. The two…

A: As per the Q&A guidelines, if multiple subparts are asked at once then the answer for the first…

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: 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 23.6% 46.3% 24.7% 26.7% 30.5% 86.9% 9.0% 23.1%…

A: Expected Return:The expected rate of return refers to the anticipated gain or loss on an investment…

Q: A stock has had returns of -19.1 percent, 29.1 percent, 25.2 percent, -10.2 percent, 34.9 percent,…

A: r1 = - 0.191 r2 = 0.291 r3 = 0.252 r4 = - 0.102 r5 = 0.349 r6 = 0.271   Number of returns (n) = 6

Q: iven the time series of historical stock returns below, what is the standard deviation? (Hint: the…

A: Variables in the question:Time Period 1 2 3 4 5return (%) 5% -7% 12% 13% -3%

Q: You’ve observed the following returns on Bennington Corporation’s stock over the past five years: 13…

A: Working Note #1 Computation of average return: Average return=0.13-0.08+0.16+0.16+0.105 Average…

Q: You find a certain stock that had returns of 15 percent, -22 percent, 23 percent, and 10 percent for…

A: Average return = total return for total period/ total period

Q: Review the following market information: Current Stock Market Return                    11.25%…

A: As per CAPM, Required Return = Risk free Rate + Beta * (Market return - risk free rate) where, Risk…

Q: A stock has had returns of 11 percent, -8 percent, 6 percent, 21 percent, 24 percent, and 16 percent…

A: The geometric return is calculated as compounded annualized return

Q: The next year's return on stock X is expected to be either -7% with probability 0.2 or 20% with…

A: In finance when we look at returns figures we often compute standard deviation as well.   Standard…

Q: A stock had retums of 1 percent, 26 percent, 8 percent, and -38 percent annually for the past 4…

A: Using excel average and variance function

Q: . The expected return. The standard deviation of the return. lote: Make sure to round all…

A: Expected return is the mean return based on the weighted probability of the return of the stock when…

Q: Stocks A and B have the following historical returns: Year     2012 -15.10% -14.90% 2013 21.50…

A: Hey, since there are multiple subpart questions posted, we will answer the first three subpart…

Q: Assume these are the stock market and Treasury bill returns for a 5-year period: Year…

A: Given: