Consider the following monthly returns. Month 12 11 10 9 8 7 Year 2021 2021 2021...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider the following monthly returns. Month 12 11 10 9 8 7 Year 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 a. Calculate the average geometric return in % (Round to closest 2 decimal places). CO5321 6 4 Return in (%) 2.33 0.93 0.47 -1.16 0.70 0.93 1.16 -0.70 2.33 0.93 0.00 1.16 b. Calculate the average arithmetic return in % (Round to closest 2 decimal places). c. Briefly explain why these two may be different. Consider the following monthly returns. Month 12 11 10 9 8 7 Year 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 a. Calculate the average geometric return in % (Round to closest 2 decimal places). CO5321 6 4 Return in (%) 2.33 0.93 0.47 -1.16 0.70 0.93 1.16 -0.70 2.33 0.93 0.00 1.16 b. Calculate the average arithmetic return in % (Round to closest 2 decimal places). c. Briefly explain why these two may be different.
Expert Answer:
Answer rating: 100% (QA)
a To calculate the average geometric return we can use the formula Average Geometric Return 1 R1 1 R2 1 Rn 1n 1 where R1 R2 Rn are the individual mont... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Sheffield Automotive purchased equipment on October 1, 2024, at a total cost of $176.000. The machine has an estimated useful life of eight years or 100.000 hours, and an estimated residual value of...
-
Find the area between the circle 4x 2 + 4y 2 = 9 and the parabola y 2 = 4x.
-
Which one of the following is NOT an example of cash flows in operating activities according to direct method? Select one: a. Cash payment for purchase of inventories b. Cash received from debtors c....
-
Table 20.4 lists some prices of options on common stocks (prices are quoted to the nearest dollar). The interest rate is 10 percent a year. Can you spot any mispricing? What would you do to take...
-
As noted in the chapter, Nick inherited $100,000 with the stipulation that he "invest it to financially benefit his family." Nick and Rachel decided they would invest the inheritance to help them...
-
The critical pressure at which latent heat of vaporization of water becomes zero is: (a) 225.65 bar (b) 273 bar (c) 100 bar (d) 1 bar
-
Ada Fontanez is the president of a large company that owns a chain of athletic shoe stores. The company was in dire financial condition when she was hired three years ago. In an effort to motivate...
-
On May 20, the board of directors for Auction.com declared a cash dividend of 50 cents per share payable to stockholders of record on June 14. The dividends are paid on July 14. The company has...
-
The Dorilane Company produces a set of wood patio furniture consisting of a table and four chairs. The company has enough customer demand to justify producing its full capacity of 2,000 sets per...
-
b) The following information on the performance of three funds A, B and C in Australia. Fund Market Risk-free rate Fund A Fund B Fund C (i) ?? ? Average return (%) 19.50 28.65 25.70 Standard...
-
With effective resource planning organizations can reduce inventory and service costs, improve efficiencies, and establish methods for continuous improvement. Depending upon the type of resource,...
-
Why does fringe benefits need to be tracked separately? It seems that it ends up being part of direct costs anyway. What is gained by tracking fringe benefits for a government contract?
-
1. (10 points) Consider sending a large file of size 8MB from source to destination. Assume there are two packet switches between a source host and a destination host. The bandwidth of each link is...
-
The following is a December 31, 2018, post-closing trial balance for Culver City Lighting, Inc. Account Title Debits Credits Cash $ 64,000 Accounts receivable 48,000 Inventories 54,000 Prepaid...
-
I want you to arrange the code better and use a short and understandable comment. Use a style code to make the code more organized and understandable package Checkpoint; /** * A class to implement a...
-
1. Create a query that will allow the user to search the minimum tank size field and the type of fish in the fish table. The search for any minimum tank size and type of fish should be possible. This...
-
Why should you not model a decision variable as a random variable with a probability distribution?
-
Prove (by a substitution) that f(-x) dx= | f(x) dx
-
Suppose that And Use properties of definite integrals interval additively, and so on to calculate each of the integrals in problems. (a) (b) (c) f(x) dx=2. | f(x) dx=3, | g(x) dx=-1, g(x) dx = 4....
-
In Problems a-c, write both the parametric equations and the symmetric equations for the line through the given point parallel to the given vector. a. (4, 5, 6), (3, 2, 1) b. (-1, 3, -6), (-2, 0, 5)...
-
An old-fashioned tire swing exerts a force on the branch and a torque about the point where the branch meets the trunk. If you hang the swing closer to the trunk, this will --the force and-- the...
-
Which of these objects is in static equilibrium? A. B. C. D.
-
A beam with a pivot on its le ft end is suspended from a rope. Tn which direction is the force of the pivot on the beam? A. B. C. D. E.
Study smarter with the SolutionInn App