Time remaining:
Finance homework help

Business & Finance
Tutor: None Selected Time limit: 0 Hours

A stock has had returns of 8 percent, 26 percent, 18 percent, −14 percent, 26 percent, and −6 percent over the last six years.


What are the arithmetic and geometric returns for the stock?

Apr 19th, 2015

Arithmetic: 58% (sum of the percents)

Geometric: 38.6%    (1.08*1.26*.86*1.26*.94-1)

Apr 19th, 2015

you r wrong the Arithmetic sum of the percents then divided by the years so the answer is 9.67

the geometric 1.08*1.26*1.18*0.86*1.26*0.94^1/6-1 = ???

I don't know how to calculate the power ! do you know ?

Apr 19th, 2015

It is arithmetic returns, not mean. I believe it is total returns.

Apr 19th, 2015

No, you are right. to calculate the power submit it into google with parentheses around the power and the thing being powered

Apr 19th, 2015

I am sure about the steps could you calculate the  the geometric as i indicated because Idon't know how to do the power   

Apr 19th, 2015

8.55%. sorry about the errors earlier.

Apr 19th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Apr 19th, 2015
...
Apr 19th, 2015
Dec 7th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer