Calculate the geometric and arithmetic annual average returns for the three stocks in the Homework 3...
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Calculate the geometric and arithmetic annual average returns for the three stocks in the "Homework 3 Data.csv" file. The returns are in decimals (0.12 corresponds to a 12% return). Examine the differences between each measure for each stock. What do you notice? What factor(s) appear to influence the magnitude of the difference between each measure? 1 2 3 t 5 6 7 8 9 year 11 stock 1 2010 0.102 2011 0.097 2012 0.123 2013 0.134 2014 0.115 2015 0.126 2016 0.087 2017 0.105 2018 0.119 2019 0.09298 stock 2 stock 3 0.14967 0.372 0.21 -0.165 -0.03 0.21739 0.00514 0.1 0.15 0.2347 -0.1 -0.29 0.18 0.6595 0.12 -0.16933 0.18347 0.2091 0.29324 0.26671 Calculate the geometric and arithmetic annual average returns for the three stocks in the "Homework 3 Data.csv" file. The returns are in decimals (0.12 corresponds to a 12% return). Examine the differences between each measure for each stock. What do you notice? What factor(s) appear to influence the magnitude of the difference between each measure? 1 2 3 t 5 6 7 8 9 year 11 stock 1 2010 0.102 2011 0.097 2012 0.123 2013 0.134 2014 0.115 2015 0.126 2016 0.087 2017 0.105 2018 0.119 2019 0.09298 stock 2 stock 3 0.14967 0.372 0.21 -0.165 -0.03 0.21739 0.00514 0.1 0.15 0.2347 -0.1 -0.29 0.18 0.6595 0.12 -0.16933 0.18347 0.2091 0.29324 0.26671
Expert Answer:
Answer rating: 100% (QA)
The geometric and arithmetic annual average returns for the three stocks in the Homework 3 Datacsv file are calculated as follows Stock 1 Geometric Re... View the full answer
Related Book For
Investment Analysis and Portfolio Management
ISBN: 978-0538482387
10th Edition
Authors: Frank K. Reilly, Keith C. Brown
Posted Date:
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