Imagine an emerging market with only 15 years of data. Compute the historical ERP using the geometric mean. (Hint: Compute the annual ERP-Rm- Rrf first and then calculate the geometric mean of it). Save the data to answer Question 2. Rm 0.100 0.120 0.300 0.200 0.050 -0.030 Rrf 1 0.035 2 0.045 3 0.068 4 0.060 5 0.030 6 0.020 7 0.050 0.010 8 0.100 0.030 9 0.450 0.060 10 0.230 0.050 11 0.150 0.040 12 0.100 0.030 13 0.060 0.020 14 0.020 0.020 15 -0.100 0.010
Imagine an emerging market with only 15 years of data. Compute the historical ERP using the geometric mean. (Hint: Compute the annual ERP-Rm- Rrf first and then calculate the geometric mean of it). Save the data to answer Question 2. Rm 0.100 0.120 0.300 0.200 0.050 -0.030 Rrf 1 0.035 2 0.045 3 0.068 4 0.060 5 0.030 6 0.020 7 0.050 0.010 8 0.100 0.030 9 0.450 0.060 10 0.230 0.050 11 0.150 0.040 12 0.100 0.030 13 0.060 0.020 14 0.020 0.020 15 -0.100 0.010
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:Imagine an emerging market with only 15 years of data. Compute the
historical ERP using the geometric mean. (Hint: Compute the annual ERP=Rm-
Rrf first and then calculate the geometric mean of it). Save the data to answer
Question 2.
Rm
Rrf
0.100 0.035
0.120 0.045
3
0.300
0.068
4 0.200 0.060
5
0.050 0.030
6
-0.030
0.020
7
0.050
0.010
0.100 0.030
0.450 0.060
10
0.230
0.050
11
0.150
0.040
12
0.100
0.030
13
0.060 0.020
14 0.020 0.020
15 -0.100 0.010
1
2
Transcribed Image Text:0.050 0.010
8
0.100
0.030
9
0.450
0.060
10
0.230
0.050
11
0.150
0.040
12
0.100
0.030
13 0.060
0.020
14
0.020
0.020
15
-0.100 0.010
7
0 0.079
0 0.085
0 0.063
0 0.094
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