A stock has had returns of 12 percent, 30 percent, 17 percent, -18 percent, 30 percent, and -7 percent over the last six years. What are the arithmetic and geometric average returns for the stock? (Do not round Intermedlate calculations and enter your answers as a percent rounded to 2 declmal places, e.g., 32.16.)

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 18PROB
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A stock has had returns of 12 percent, 30 percent, 17 percent, -18 percent, 30 percent,
and -7 percent over the last six years.
What are the arithmetic and geometric average returns for the stock? (Do not round
Intermedlate calculations and enter your answers as a percent rounded to 2 declmal
places, e.g., 32.16.)
Arithmetic average return
Geometric average return
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Transcribed Image Text:A stock has had returns of 12 percent, 30 percent, 17 percent, -18 percent, 30 percent, and -7 percent over the last six years. What are the arithmetic and geometric average returns for the stock? (Do not round Intermedlate calculations and enter your answers as a percent rounded to 2 declmal places, e.g., 32.16.) Arithmetic average return Geometric average return < Prev 14 of 30 Next EA9F9D41-D35...jpeg 8A1B4474-4751.jpeg 8A1B4474-4751..jpeg
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