Stock Z has the following returns for last five years. Calculate the arithmetic average return and geometric return for the stock. Returns: 10%, 15%, -8%, -9% and 12% a. Arithmetic average is 4% and geometric return is 3.47%. b. Arithmetic average is 10.8% and geometric return is 10.77%. c. Arithmetic average is 7.2% and geometric return is 6.90%. d. Arithmetic average is 4.10% and geometric return is 3.47%.
Stock Z has the following returns for last five years. Calculate the arithmetic average return and geometric return for the stock. Returns: 10%, 15%, -8%, -9% and 12% a. Arithmetic average is 4% and geometric return is 3.47%. b. Arithmetic average is 10.8% and geometric return is 10.77%. c. Arithmetic average is 7.2% and geometric return is 6.90%. d. Arithmetic average is 4.10% and geometric return is 3.47%.
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 17P
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