Question: For small-cap stocks, if arithmetic average was 20% and the standard deviation were reported to be 10%, what would be the approximate geometric average return

For small-cap stocks, if arithmetic average was 20% and the standard deviation were reported to be 10%, what would be the approximate geometric average return for these small-cap stocks?

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!

For small-cap stocks, if arithmetic average was 20% and the standard deviation were reported to be 10%, what would be the approximate geometric average return for these small-cap stocks? A. Approx....

QUESTION 6 For small-cap stocks, if arithmetic average was 15% and the standard deviation were reported to be 30%, what would be the approximate geometric average return for these small-cap stocks? A...

For small-cap stocks, if arithmetic average was 17.7% and the standard deviation were reported to be 33.7%, what would be the approximate geometric average return for these small-cap stocks?...

Assume that the historical return on large-company stocks is a predictor of the future returns. What return would you estimate for large-company stocks over the next year? The next 10 years? 20...

Saved Assume that the historical return on large-company stocks is a predictor of the future returns. What return would you estimate for large-company stocks over the next year? The next 10 years? 20...

Fan Milk Ltd is about to undertake a project which requires initial investment of GH300,000. The expected cash inflows from year 1 to year 5 are GH80,000, GH100,000, GH110,000, GH80,500 and GH100,500...

I need to choose four stocks including a specific stock (let's say it is A) assigned to me. 1) Choose another stock. Let's say it as B. So, now, you have A & B to construct your two-stock portfolio...

8. Risk and return Suppose Cho Is choosing how to allocate her portfolio between two asset classes: risk-free government bonds and a risky group of diversified stocks. The following table shows the...

first drop down: positiveegative second and third drop down: -6.5 %, 0.4%, 8.5%, 13.5% 8. Risk and return Suppose Dina is choosing how to allocate her portfolio between two asset classes: risk-free...

For a thin copper plate, total emissive power is given as 80 W/m^2. irradiation is 190W/m^2. If this plate has reflectivity= 0.6, obsorbivity = 0.1, and transmissivity =0.6, then the radiosity in...

Why is ERM becoming more important to organizations?

5. Consider a Bertrand oligopoly consisting of four firms that produce an identical product at a marginal cost of $140. Analysts estimate that the inverse market demand for this product is P = 400 ...

Plz solve quickly Racing with a Head Start . Cheri has a new Dodge Charger and has challenged Vince, with a VW GTI, to a race. . Cheri's Charger goes from 0 to 60 mph in 5.3 s. . Vince's VW goes from...

1. Use quintiles to briefly summarize the degree of income inequality in the United States. How and to what extent does government reduce income inequality? LO23.1

6. What factors have contributed to increased income inequality since 1975? LO23.3

4. Why is the lifetime distribution of income more equal than the distribution in any specific year? LO23.1