Calculation of arithmetic mean and geometric mean Data for Extell Corp The arithmetic mean of the total returns for Extell, 20082012 To calculate the geometric mean in this example, convert the returns into decimals, and add 1 0, producing return relatives The GM is the fifth root of the product of...

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Calculation of arithmetic mean and geometric mean: Data for Extell Corp. The arithmetic mean of the total

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Calculation of arithmetic mean and geometric mean: Data for Extell Corp.

Year (t) 2007 2008 2009 2010 2011 2012 (1) End-of-Year Price (P) $74.60 $64.30 $67.70 $56.70 $96.25 $122.00

The arithmetic mean of the total returns for Extell, 2008–2012:

(R%)_96.6 5 n = 19.32%

To calculate the geometric mean in this example, convert the returns into decimals, and add 1.0, producing return relatives. The GM is the fifth root of the product of the return relatives.

Year 2008 2009 2010 2011 2012 R% -9.2 10.6 - 11.2 75.8 30.6 R Decimal -0.092 0.106 -0.112 0.758 0.306 (I + R)

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Investments Analysis And Management

ISBN: 9781118975589

13th Edition

Authors: Charles P. Jones, Gerald R. Jensen

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Question Posted: Dec 24, 2023 01:13 AM

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Calculation of arithmetic mean and geometric mean: Data for Extell Corp. The arithmetic mean of the total

Question:

Year (t) 2007 2008 2009 2010 2011 2012 (1) End-of-Year Price (P₁) $74.60 $64.30 $67.70 $56.70 $96.25 $122.00 (2) Calendar-Year Dividends (D₂) $2.88 $3.44 $3.44 $3.44 $3.44 $3.71 R% -9.2 10.6 -11.2 75.8 30.6

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Investments Analysis And Management

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