Consider the following five monthly returns: 6% - 2% 5% c. Calculate the monthly variance over this period. d. Calculate the monthly standard deviation over this period. 8% a. Calculate the arithmetic average monthly return over this period and express your answer as a percentage per month. b. Calculate the geometric average monthly return over this period. *** - 4%
Consider the following five monthly returns: 6% - 2% 5% c. Calculate the monthly variance over this period. d. Calculate the monthly standard deviation over this period. 8% a. Calculate the arithmetic average monthly return over this period and express your answer as a percentage per month. b. Calculate the geometric average monthly return over this period. *** - 4%
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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Transcribed Image Text:Stuck on C and D. Will leave a thumbs up for the correct answer
Consider the following five monthly returns:
6%
- 2%
- 4%
a. Calculate the arithmetic average monthly return over this period and express your answer as a percentage per month.
b. Calculate the geometric average monthly return over this period.
c. Calculate the monthly variance over this period.
d. Calculate the monthly standard deviation over this period.
a. The arithmetic average is 2.6%.
(Round to two decimal places.)
b. The geometric average is 2.49 %.
(Round to two decimal places.)
c. The variance is
(Round to five decimal places.)
G
5%
(+
...
8%
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