general account A tech stock delivered returns of 18%, -7%,12%, 9%, and 20% over five successive years.What is the arithmetic average annual returnper year?A. 10.4%B. 8.75%C. 12.6%D. 10.2%

Step 1: Definition of Arithmetic Average Annual ReturnThe arithmetic average annual return is the…

Answered: A tech stock delivered returns of 18%,…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 17P

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A stock has annual returns of 6 percent, 14 percent, -3 percent, and 2 percent for the past four years. The arithmetic average of these returns is ______ percent while the geometric average return for the period is percent. a. 6.33; 6.19 b. 4.57; 4.75 c. 6.19; 6.33 d. 4.75; 4.57
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A stock has the following prices at the end of each of the following 5 years. What is the geometric average return over the period? Year 20x1 20x2 20x3 20x4 20x5 b. 1.17% 4 c. 2.26% d. 1.94% Price $2.17 $2.19 $2.12 $2.51 $2.3 Finish review
A stock has the following returns over a 3 year period: 25%, -4%, 8%. What is this stock's geometric average return over this 3 year period?
A stock had returns of 3%, 12%, 26%, - 14%, and - 1% for the past five years period based on these returns, what is the approximate probability that the stock will return at least 20% in any one given year?
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A tech stock delivered returns of 18%, -7%, 12%, 9%, and 20% over five successive years. What is the arithmetic average annual return per year? A. 10.4% B. 8.75% C. 12.6% D. 10.2%