Question: If the arithmetic average return for a stock is 8% and its volatility is 30%, what is an approximate value for its geometric compound return

If the arithmetic average return for a stock is 8% and its volatility is 30%, what is an approximate value for its geometric compound return IN PERCENT? (Ex. If your answer is 9.5%, type your answer as 9.5 without the percent sign)

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!

On January 1, 2014, a U.S. company purchased 100% of the outstanding stock of Ventana Grains, a company located in Latz City, New Zealand. Ventana Grains was organized on January 1, 2000. All the...

QUESTION 18 If the arithmetic average return for a stock is 8% and its volatility is 30%, what is an approximate value for its geometric compound return IN PERCENT? (Ex. If your answer is 9.5%, type...

Q9 Questions and Problems 1. Calculating Returns (LOI, CFAI) Suppose you bought 100 shares of stock at an initial price of $37 per share. The stock paid a dividend of $0.28 per share during the...

The rates of return on Cherry Jalopies, Inc., stock over the last five years were 20 percent, 11 percent, -2 percent, 4 percent, and 10 percent. Over the same period, the returns on Straw...

please answer all soonest correcrly ( under 25 minutes cause it's timing) and I will rate you 5 star! thanks 16 Suppose you bought 750 shares of stock at an initial price of $49 per share. The stock...

A stock has had returns of ?18.9 percent, 28.9 percent, 22.8 percent, ?10.0 percent, 34.7 percent, and 26.9 percent over the last six years. Required: What are the arithmetic and geometric returns...

Q1. & Q9. Thanks for the help! Questions and Problems 1. Calculating Returns (LOI, CFA1) Suppose you bought 100 shares of stock at an initial price of $37 per share. The stock paid a dividend of...

Asignacin Chapter 15] 1 ] 5uppose the stock had initial price of 5310::- per share, paid a dividend of $2.15 per share during the year, and had an ending share price of 553. Compute the percentage...

Problem 1-15 Geometric Return {LO1. CFA1} Your grandfather invested $1,000 in a stock 38 years ago. Currently, the value of his account is $322,000. What is his geometric return over this period? [Do...

The rates of return on Cherry Jalopies, Inc., stock over the last five years were 1 7 percent, 1 1 percent, - 2 percent, 3 percent, and 1 4 percent. Over the same period, the returns on Straw...

4. Assume you wish to take a long position in a forward contract with a 2-year maturity. However, this forward contact is not for delivery of a zero-coupon bond on the maturity of the forward...

Portions of the financial statements for Hawkeye Company are provided below. Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company...

An equity infusion requires Group of answer choices The creditor must reduce the amount of debt. The court must approve the arrangement. The debtor must sell personal assets. Money through an outside...

5. If a father wants to have $100,000 to send a newborn child to college, how much must he invest annually for 18 years if he earns 9 percent on his funds? (Any current student who subsequently...

What reader benefits are included?

Are emotional appeals ethical? Why or why not? [LO-4]

Is the subject line effective? Why or why not?