Answered: Arithmetic and geometric returns. A…

Arithmetic and geometric returns. A stock had returns of 29%, 14%, 22%, -8%, 9%, and -14% over the last six years. What are the arithmetic and geometric returns for the stock?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter11: Investment Planning

Section: Chapter Questions

Problem 6FPE

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Arithmetic and geometric returns.

A stock had returns of 29%, 14%, 22%, -8%, 9%, and -14% over the last six years. What are the arithmetic and geometric returns for the stock?

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Step 2: Calculation of Arithmetic mean

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