Question: ANSWER IS PROBLEM A B AND C a. What is the arithmetic average return over the 10-year period? The arithmetic average return over the 10

ANSWER IS PROBLEM A B AND C

a. What is the arithmetic average return over the 10-year period? The arithmetic average return over the 10 -year period is 8.05%. (Round to two decimal places.) b. What is the geometric average return over the 10-year period? First find the future value of investing $1 today, using the following formula: FV=$1((1+R1)(1+R2)(1+Rr)) Then use the following formula and solve for R : FV=$1(1+R)10 The geometric average return, R, over the 10 -year period is \%. (Round to four decimal places.)

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!

1 Please Help B and C a. What is the arithmetic average return over the 10 -year period? b. What is the geometric average return over the 10-year period? c. If you invested $100 at the beginning, how...

Please help me a. b. and c. a. What is the arithmetic average return over the 10-year period? b. What is the geometric average return over the 10 -year period? c. If you invested $100 at the...

Ten annual returns are listed in the following table: -19.4% 16.7% 18.1% -49.6% 43.7% 1.3% -16.3% 45.6% 45.2% -3.3% Arithmetic average return over 10-year period is 0.0820 b) What is the geometric...

Ten annual returns are listed in the following table: C a. What is the arithmetic average return over the 10 -year period? b. What is the geometric average return over the 10-year period? c. If you...

#5 a. b. c. a. What is the arithmetic average return over the 10 -year period? b. What is the geometric average retum over the 10 -year period? c. If you invested $100 at the beginning, how much...

Ten annual returns are listed in the following table: ( Click on the following icon in order to copy its contents into a spreadsheet. ) negative 1 9 . 5 % 1 6 . 2 % 1 8 . 3 % negative 4 9 . 3 % 4 3 ....

just part A and C Required: a. Calculate the arithmetic average return on these stocks over the sample period. b. Which stock has greater dispersion around the mean return? c. Calculate the geometric...

finance You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 13 percent, -8 percent, 16 percent, 16 percent, and 10 percent. a. What was the arithmetic...

You've observed the following returns on Yasmin Corporation's stock over the past five years: 10 percent. -11 percent, 18 percent, 19 percent, and 10 percent. a. What was the arithmetic average...

Ten annual returns are listed in the followingtable: negative 19.9 19.9% 16.6 16.6% 18.0 18.0% negative 50.0 50.0% 43.3 43.3% 1.2 1.2% negative 16.5 16.5% 45.6 45.6% 45.2 45.2% negative 3.0 3.0% a....

If you pay the bank $500 each year for the next 12 years, after that the bank will pay you $500 each year forever. The interest rate is 7%, answer the following: 1. At the end of 12 years, what is...

DATE() - In the OrderHeaders worksheet, in cell AB2 use DATE() and find out how many days there have been since 1/1/1900 and 12/4/2020. Change the formatting to a number if the results from DATE() is...

EB 1 0 . LO 1 1 . 3 You have been depositing money into an account yearly based on the following investment amounts, rates and times. What is the value of that investment account at the end of that...

2023 1040 form 1.Phillip and Claire are married and file a joint return. Phillip is self-employed as a real estate agent, and Claire is a flight attendant. Phillip and Claire have three dependent...