Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. consider the rate of return of stocks abc and xyz

Consider the rate of return of stocks ABC and XYZ Enter your search term Year...

90.2K

Verified Solution

Question

Accounting

image
image
Consider the rate of return of stocks ABC and XYZ Enter your search term Year 1 2 3 4 5 PABC 185 11 14 4 3 BOK 10 17 -7 Required: 0. Calculate the arithmetic average return on these stocks over the sample period. (Do not round Intermediate calculations, Round your answers to 2 decimal places.) Arithmetic Average ABC XYZ b. Which stock has greater dispersion around the mean return? XYZ c. Calculate the geometric average returns of each stock. (Do not round Intermediate calculations, Round your answers to 2 decimal places.) Geometric Average 95 ABC EXYZ d. If you were equally likely to earn a return of 18%, 11%14%, 4%, or 3%, in each year (these are the five annual returns for stock BC). what would be your expected rate of return? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Expected rate of return % e. What if the five possible outcomes were those of stock XYZ? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Expected rate of return % 1. Given your answers to (a) and (e), which measure of average return, arithmetic or geometric, appears more useful for predicting future performance? Arithmetic Geometric

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

7. Let m be a fixed positive integer. (a) Prove that no two among the integers...

Advance Math
Q

Safety Award: Imagine you are on a newly formed national committee that will be awarding safety...

Operations Management
Q

A two stroke cycle diesel engine compression ignition internal combustion engine of a large ship...

Physics
Q

A satellite is revolving in a circular orbit of radius 2R R radius of earth...

Physics
Q

1 In uniform circular motion a both the angular velocity and the angular momentum vary...

Physics
Q

Match the equation with its graph 16 O O 10 10 5 y 10 5...

Geometry
Q

The actual delivery time from a pizza delivery company is exponentially distributed with a mean...

Basic Math
Q

Find the value of the expression.25.2 - 32 + 12.4 - (- 5.3) =

Basic Math
Q

cast is paid after each show. The other variable cost is a program-printing cost of...

Accounting
Q

Thank you! workcheet? For the tooltas, press ALT+FIO (PC)...

Accounting
Q

1. Using the information from Exhibits C6.1 and C6.2 develop a pro forma income statement...

Finance
Q

Division A produces a product that it sells to the outside market. It has compiled...

Accounting