A. Explain the relationship among arithmetic mean return, geometric mean return, and variability of returns. B. Contrast
Question:
B. Contrast the use of the arithmetic mean return to the geometric mean return of an investment from the perspective of an investor concerned with the investment's terminal value.
C. Contrast the use of the arithmetic mean return to the geometric mean return of an investment from the perspective of an investor concerned with the investment's average one-year return.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 72% (11 reviews)
A So long as a return series has any variability the geometric mean return must be less than the ari...View the full answer
Answered By
Saikumar Ramagiri
Financial accounting:- Journal and ledgers, preparation of trail balance and adjusted trail balance Preparation of income statement, retained earning statement and balance sheet Banks reconciliation statements Financial statement analysis Cash flow statement analysis (both direct and indirect methods) All methods of Depreciations Management Accounting:- Ratios Budgeting control Cash budget and production budget Working capital management Receivable management Costing:- Standard and variance costing Marginal costing and decision making Cost-volume-profit analysis Inventory management (LIFO, FIFO) Preparation and estimation of cost sheet Portfolio management:- Calculation of portfolio standard deviation or risk Calculation of portfolio expected returns CAPM, Beta Financial management:- Time value of money Capital budgeting Cost of capital Leverage analysis and capital structure policies Dividend policy Bond value calculations like YTM, current yield etc International finance:- Derivatives Futures and options Swaps and forwards Business problems Finance problems Education (mention all your degrees, year awarded, Institute/University, field(s) of major): Education Qualification Board/Institution/ University Month/Year of Passing % Secured OPTIONALS/ Major ICWAI(inter) ICWAI inter Pursuing Pursuing - M.com(Finance) Osmania University June 2007 65 Finance & Taxation M B A (Finance) Osmania University Dec 2004 66 Finance & Marketing. B.Com Osmania University June 2002 72 Income Tax, Cost & Mgt, Accountancy, Auditing. Intermediate (XII) Board of Intermediate May 1999 58 Mathematics, Accountancy, Economics. S S C (X) S S C Board. May 1997 74 Mathematics, Social Studies, Science. Tutoring experience: • 10 year experience in online trouble shooting problems related to finance/accountancy. • Since 6 Years working with solution inn as a tutor, I have solved thousands of questions, quick and accuracy Skills (optional): Technical Exposure: MS Office, SQL, Tally, Wings, Focus, Programming with C Financial : Portfolio/Financial Management, Ratio Analysis, Capital Budgeting Stock Valuation & Dividend Policy, Bond Valuations Individual Skills : Proactive Nature, Self Motivative, Clear thought process, Quick problem solving skills, flexible to complex situations. Achievements : 1. I have received an Award certificate from Local Area MLA for the cause of getting 100% marks in Accountancy during my Graduation. 2. I have received a GOLD MEDAL/Scholarship from Home Minister in my MBA for being the “Top Rank student “ of management institute. 3. I received numerous complements and extra pay from various students for trouble shooting their online problems. Other interests/Hobbies (optional): ? Web Surfing ? Sports ? Watching Comics, News channels ? Miniature Collection ? Exploring hidden facts ? Solving riddles and puzzles
4.80+
391+ Reviews
552+ Question Solved
Related Book For
Quantitative Investment Analysis
ISBN: 978-1119104223
3rd edition
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
Question Posted:
Students also viewed these Statistics questions
-
Construct 90% confidence intervals for the binomial parameter p for each of the following pairs of values. Write your answers on the chart. f. Explain the relationship between the answers to parts a...
-
The Fall 1995 issue of Investment Digest, a publication of The Variable Annuity Life Insurance Company of Houston, Texas, discusses the importance of portfolio diversification for long- term...
-
The Fall 1995 issue of Investment Digest, a publication of The Variable Annuity Life Insurance Company of Houston, Texas, discusses the importance of portfolio diversification for long-term...
-
True or False: 1. Economists are not completely in agreement on what constitutes money for all purposes. 2. People use nontransaction accounts primarily because they generally pay higher interest...
-
Use your experience with Prob. 1511 and Ex. 152 to design an interactive computer-aided design program for straight-steel bevel gears, implementing the ANSI/AGMA 2003-B97 standard. It will be helpful...
-
One of the features of a new machine shop will be a well-stocked tool crib. The manager of the shop must decide on the number of attendants needed to staff the crib. Attendants will receive $20....
-
Which of the following are debt investments an entity has both the positive intent and the ability to hold till maturity? a. Trading securities. b. Call options. c. Available-for-sale securities. d....
-
Maui Outfitters Corporation manufactures and distributes leisure clothing. Selected transactions completed by Maui Outfitters during the current fiscal year are as follows: Feb 19. Split the common...
-
The speed of the fastest-pitched baseball was 45.0 m/s , and the ball's mass was 145 g. 1a. What was the magnitude of the momentum of this ball? 1b. How many joules of kinetic energy did this ball...
-
EBV is considering an investment in Softco, an early-stage software company. If Softco can execute on its business plan, then EBV estimates it would be five years until a successful exit, when Softco...
-
The table below gives the annual total returns on the MSCI Germany Index from 1993 to 2002. The returns are in the local currency. Use the information in this table to answer Questions 5-10. MSCI...
-
The following table repeats the annual total returns on the MSCI Germany Index previously given and also gives the annual total returns on the JP Morgan Germany five- to seven-year government bond...
-
A student incorrectly described the graph of the function as a circle centered at the origin with radius 7. Give the correct description of the graph. f(x) = 49 - x
-
Substance over form is a recipe for failing to achieve comparability between accounting statements for different businesses. Discuss.
-
Who is supposed to obey accounting standards in the United States? Are they followed in practice?
-
Discuss the concept of interest rate parity.
-
If at all possible, compare your answer to Exercise 1.5 with the answers of students from different national backgrounds. Try to explore likely causes of any major differences that emerge, in terms...
-
Discuss the internationalization of business.
-
In a sample of 300 adults, 123 like chocolate ice cream and 84 like vanilla ice cream. One adult is randomly selected from these adults. a. What is the probability that this adult likes chocolate ice...
-
The following processes constitute the air-standard Diesel cycle: 12: isentropic compression,23: constant-volume energy addition (T and P increase),34: constant-pressure energy addition (v...
-
The Statistics Consulting Center at Virginia Polytechnic Institute and State University analyzed data on normal woodchucks for the Department of Veterinary Medicine. The variables of interest were...
-
The amounts of solids removed from a particular material when exposed to drying periods of different lengths are as shown. (a) Estimate the linear regression line. (b) Test at the 0.05 level of...
-
With reference to Exercise 11.7 construct (a) A 95% confidence interval for the average weekly sales when $45 is spent on advertising; (b) A 95% prediction interval for the weekly sales when 845 is...
-
A printer is publishing multiple copies of a specific document. While printing this document, ink is being used at a rate of r(t) = 0.2(1 + cos(t)),measured in ounces/min. If the printer started the...
-
discuss the role of colonialism and its impact on language, identity, and power dynamics in Chinua Achebe's "Things Fall Apart," particularly in the context of the Igbo society and European...
-
Let Y1,...,Yn be a random sample from the following distributions with the unknown parameter(s). Estimate them by maximum likelihood and by the method of moments. fe (y) = 0y01, 0 y 1, 0 > 0
Study smarter with the SolutionInn App