During the past 12 years, a common stock has produced an arithmetic average return of 12.6 percent and a geometric average return of 12.3 percent. What is the projected return on this stock for the next five years according to Blume's formula?Multiple Choice11.70%О12.03%11.89%12.49%12.12%

referencehttps://answers.microsoft.com/en-us/msoffice/forum/all/blumes-formula/625ab25c-02cd-4c8e-97…

Answered: During the past 12 years, a common…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 17P

See similar textbooks

Similar questions

Your stock's returns for the past four years are as follows. t Return t1 19.79% t2 -0.58% t3 8.55% t4 4.68% Compute the geometric average return for this stock. Please enter your answer as a PERCENT rounded to 2 decimal places.
What is the geometric return for this stock on these accounting question?
Saved Over the last five years, the price of stock A has been changing as follows. What should be the geometric return? Hint: make sure you use the return and correct number of periods in the formula. Year Stock Price 7.47%. 8.37%. 10.00%. 6.37%. 9.04%. 11.12%. 2019 $87 2020 $90 2021 $83 2022 $100 2023 $120
A stock had returns of 15 percent, 20 percent, 11 percent, 5 percent, 11 percent, and -7 percent over the last six years. What is the arithmetic return for the stock? Arithmetic return What is the geometric return for the stock? Geometric return
Stock Z has the following returns for last five years. Calculate the arithmetic average returnand geometric return for the stock.Returns: 10%, 15%, -8%, -9% and 12%
A stock has had returns of 11 percent, -8 percent, 6 percent, 21 percent, 24 percent, and 16 percent over the last six years. What is the geometric retúrn for this stock? O 10.82 percent 11.13 percent O 11.31 percent O 11.42 percent O 11.47 percent
During the past five years, you owned two stocks that had the following annual rates of return: Year Stock T Stock B 1 0.19 0.08 2 0.08 0.03 3 −0.12 −0.09 4 −0.03 0.02 5 0.15 0.04 Compute the arithmetic mean annual rate of return for each stock. Which stock is most desirable by this measure? Compute the standard deviation of the annual rate of return for each stock. (Use Chapter 1 Appendix if necessary.) By this measure, which is the preferable stock? Compute the coefficient of variation for each stock. (Use the Chapter 1 Appendix if necessary.) By this relative measure of risk, which stock is preferable? Compute the geometric mean rate of return for each stock. Discuss the difference between the arithmetic mean return and the geometric mean return for each…
) The table below shows the annual returns for a stock over the last four years. Year Return 2018 -12% 2019 15% 2020 27% 2021 -34% a. What is the stock's average return over the 2018-2021 period? b. What is the standard deviation of returns over this same period? MacBook Pro
During the last four years, you owned two stocks that have had the following annual rates of return. Year KEX KW 2014 0.13 -0.08 2015 0.05 0.21 2016 0.07 0.06 2017 0.09 0.15 Compute the arithmetic mean annual return for EACH stock Compute the standard deviation of the annual rate of return for EACH stock Taking the results of (i) and (ii) into consideration, which stock is preferable? Why? Compute the geometric mean annual return for EACH stock
Suppose that a stock gave a realized return of 15% over a two-year time period and a 5% return over the third year. The geometric average annual return is: ..... O A. 5.78% В. 8.67% C. 9.83% O D. 11.57%
If the annual volatility of a stock's annual returns is 35% per year and if the stock has a price of $77, the monthly volatility of that same stock's monthly price changes should approximately be: a. $224.58 b. $7.78 c. $26.95 d. $32.24
Consider a stock which realized the following historical return over the last three years: -6% in 2020, 4% in 2021, and 11% in 2022. What is the standard deviaition of returns over these three years? 6.98% 1.46% 6.08% O 8.54%

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS

During the past 12 years, a common stock has produced an arithmetic average return of 12.6 percent and a geometric average return of 12.3 percent. What is the projected return on this stock for the next five years according to Blume's formula? Multiple Choice 11.70% О 12.03% 11.89% 12.49% 12.12%