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Finance homework help

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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?

Oct 23rd, 2017

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

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Oct 23rd, 2017
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Oct 23rd, 2017
Oct 23rd, 2017
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