A stock has had returns of 39.50 percent, 23.50 percent, 34.50 percent, -11.50 percent, 21.50 percent, and -53.50 percent over thelast six years. What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Round the finalanswers to 2 decimal places.)Arithmetic average returnGeometric average return

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

Answered: Arithmetic average return Geometric…

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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Arithmetic average return Geometric average return % olo olo %