Question: 1. What was the geometric average return for a stock that had the following annual returns over the past 4 years: 13.00% (4 years ago),

1.

What was the geometric average return for a stock that had the following annual returns over the past 4 years: 13.00% (4 years ago), 20.00% (3 years ago), -23.00% (2 years ago), and 39.00% (last year)?(Round the value to 100th decimal and Please enter the value only without converting it to a decimal format. If the answer is 8.55%, enter 8.55)

2.

A stock had returns of -18.00% (1 year ago), 9.00% (2 years ago), X (3 years ago), and 23.00% (4 years ago) in each of the past 4 years. Over the past 4 years, the arithmetic average annual return for the stock was 5.00%. What was the geometric average annual return for the stock over the past 4 years?(Round the value to 100th decimal)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!