Question: Hello! I need help with finding part two of this question. Below is my work for the first part and my answer. Part 2 Using

Hello! I need help with finding part two of this question. Below is my work for the first part and my answer.

Part 2

  1. Using the information in the previous question, help Charlene to determine the geometric average returns for the stock:
    1. 3.064
    2. 2.165
    3. 6.282
    4. 2.064
    5. None of the above

Part 1

  1. Charlene analyzed a sample of returns of a stock and generated the following data for 6 years. 8%, -9%, -11%, 22%, 7%, -1%. Her analysis resulted in the following for arithmetic average, standard deviation and variance:
    1. 3.667, 13.3071, 151.4667
    2. 2.667, 13.3071, 151.4667
    3. 2.667, 151.4667, 12.3071
    4. 1.667, 12.3071, 152.4667
    5. 2.667, 12.3071, 151.4667

Arithmetic Avg. Variance

R1 = 8% *(Sx)^2 = 151.4667

R2 = -9%

R3 = -11% Standard Deviation

R4 = 22% (square root 151.4667)

R5 = 7% = 12.3071

R6 = -1%

+_______________

16%/6 = 2.666667

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