Question: Question 15b: Examine the below graph. The arithmetic gross discrete return (AAGDR) is 192.5143% pa. The standard deviation of the log gross discrete returns (SDLGDR)

 Question 15b: Examine the below graph. The arithmetic gross discrete return

Question 15b: Examine the below graph. The arithmetic gross discrete return (AAGDR) is 192.5143% pa. The standard deviation of the log gross discrete returns (SDLGDR) is 110% pa. The current stock price is $0.80. Some labelled numbers have been deliberately replaced with letters in brackets corresponding to the answer choices below. Price and Return Probability Density Functions Legend frequency =mean median AAGDR = 1.925143 o SDLGDR = 1.1 PO 0.8 = current price Plmean (b) Plmedian (a) P1 = PO*exp(LGDR) = PO*(1+NDR) GDR = P1/PO = 1+NDR GAGDR = (c) AAGDR = 1.925143 medianNDR meanNDR (d) NDR (P1-PO)/PO - PO*exp(LGDR) LGDR - In(P1/PO) - In(1+NDR) AALGDR (e) Which of the below statements is NOT correct? All numbers are rounded to 6 decimal places. The expected future: Select one: O a. Median price in one year is $0.841017. O b. Mean price in one year is $1.540114. c. The geometric average gross discrete return (GAGDR) over the next year is 1.051271. d. The mean net discrete return (NDR) over the next year is 0.925143. e. The arithmetic average log gross discrete return (AALGDR) over the next year is 0.071271. O Question 15b: Examine the below graph. The arithmetic gross discrete return (AAGDR) is 192.5143% pa. The standard deviation of the log gross discrete returns (SDLGDR) is 110% pa. The current stock price is $0.80. Some labelled numbers have been deliberately replaced with letters in brackets corresponding to the answer choices below. Price and Return Probability Density Functions Legend frequency =mean median AAGDR = 1.925143 o SDLGDR = 1.1 PO 0.8 = current price Plmean (b) Plmedian (a) P1 = PO*exp(LGDR) = PO*(1+NDR) GDR = P1/PO = 1+NDR GAGDR = (c) AAGDR = 1.925143 medianNDR meanNDR (d) NDR (P1-PO)/PO - PO*exp(LGDR) LGDR - In(P1/PO) - In(1+NDR) AALGDR (e) Which of the below statements is NOT correct? All numbers are rounded to 6 decimal places. The expected future: Select one: O a. Median price in one year is $0.841017. O b. Mean price in one year is $1.540114. c. The geometric average gross discrete return (GAGDR) over the next year is 1.051271. d. The mean net discrete return (NDR) over the next year is 0.925143. e. The arithmetic average log gross discrete return (AALGDR) over the next year is 0.071271. O

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