INVESTMENTS(LL)W/CONNECT
INVESTMENTS(LL)W/CONNECT
11th Edition
ISBN: 9781260433920
Author: Bodie
Publisher: McGraw-Hill Publishing Co.
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Chapter 24, Problem 5PS

A

Summary Introduction

To calculate: Arithmetic average returns of all the stocks.

Introduction: Arithmetic average returns is sum of all the returns divided by number of years. Arithmetic average is simply mean of the average values.

B

Summary Introduction

To calculate: Find the stock which has greater dispersion.

Introduction: Dispersion defines as how many times a number varies in data. It can be evaluated by using standard deviation, range, and variance.

C

Summary Introduction

To calculate: The geometric mean of stocks.

Introduction: Geometric mean calculated for the series which has a common ratio between two terms. For example 3, 9, 27, 81 here the common ratio is 3 between two terms.

D

Summary Introduction

To calculate: Expected rate of return for both the stocks.

Introduction: The expected return rate is mean of return means sum of the all return divided by the total number of years whereas the return is a product of return and weight of particular stock.

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