Suppose that a stock gave a realized return of 15% over a two-year time period and a 5% return over the third year. The geometric average annual return is: ..... O A. 5.78% O B. 8.67% C. 9.83% O D. 11.57%

Q: What are the arithmetic and geometric average returns for a stock with annual returns of 15 percent,…

A: Arithmetic mean = sum of all return/ n Where n = 4 Geometric mean =…

Q: A common stock has expected year-end dividend is D1 = ₱1.60, its required return is rs = 11.00%, its…

A: growth rate = expected return - dividend yield = 11 - 6 = 5%   dividend yield = dividend/price price…

Q: You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 19…

A: The average return of a stock represents an average annualized return for a specific time duration.…

Q: You have found the following historical information for DEF Company: Year 2 Year 3 Year 4 Year1…

A: INTRODUCTION: Expcted growth rate 7% Year Stock Price EPS 1 47.59 2.45 2 52.42 2.68 3 56.88…

Q: You find a certain stock that had returns of 15.2 percent, -22.6 percent, 28.6 percent, and 19,6…

A: Average is the sum of all stock returns divided by number of return. given, average =13.2% Let the…

Q: Assume ZYX stock generated earnings of $1.75 per share this year. What should the stock price be if…

A: Earning per share = $ 1.75 Payout ratio = 40% Dividend per share (D0) = 1.75*0.40 = $ 0.70 Annual…

Q: You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 12…

A: Average Nominal Return = (12% -9% +20% +17% +10%) / 5  Average Nominal Return = 50%/5 Average…

Q: If a stock's P/E ratio is 13.5 at a time when earnings are $3 per year and the dividend payout ratio…

A: P/E ratio is price to earnings ratio  it is the ratio of price of share to earnings per share

Q: Stock Z has the following returns for last five years. Calculate the arithmetic average return and…

A: Returns refers to incremental amount over initial investment that an investor expects to receive…

Q: assume the current dividend is $4.00 and is expected to grow at a rate of 10% for three years and 6%…

A: Let Dn be the dividend in year 0. D0 = $4 D1 = $4(1.1) = $4.4 D2 = $4(1.1)^2 = $4.84 D2 = $4(1.1)^3…

Q: A stock has had returns of -5.32 percent, -7.58 percent, 4.68 percent, 7.7 percent, 8.98 percent,…

A: The below expression can be used to calculate geometric average return:

Q: Suppose that the rate of return for a particular stock during the past two years was 10% and 20%.…

A: Geometric Rate of return= [(1+r1)*(1+r2)......(1+r3)1/n-1   r1= .10 r2=.20 n=2 years

Q: Stock Z has the following returns for last five years. Calculate the arithmetic average return and…

A: Arithmetic Average Return refers to the concept which is appropriate for a shorter period of time.…

Q: A stock has a current price of 100. The stock price in two years is either 120 or 100 with equal…

A: The standard deviation is the variability between the annual returns of the stocks. It indicates the…

Q: A stock with a required rate of return of 10 percent sells for P35 per share. The stock’s dividend…

A: The Dividend Growth Model refers to a model that helps in calculating the intrinsic value of a stock…

Q: Suppose that the daily simple returns of a stock in one week were -0.4%, 0.8%, 1.3%, -1.5%, and…

A: Log returns is one of the method for calculating returns of stocks. This method assumes that the…

Q: What are the arithmetic and geometric (Answer in that order.) average returns for a stock with…

A: Returns 9.4% 8.2% -8.3% 4.1% 9.5%

Q: A stock’s returns for the past 3 years were 10%, 215%, and 35%.What is the historical average…

A: Working note:

Q: If the volatility of a non-dividend paying stock is 35% per annum and a risk-free rate is 4% per…

A: d is the ratio of expected price in next time period to price of previous period for the down side…

Q: You find that the annual Sharpe ratio for stock A returns is equal to 1.83. For a 2-year holding…

A: In the given question we have given that annual sharp ratio for stock A is 1.83 For year 2, holding…

Q: Pessimus stock's rate of return over the past 5 years was: 5%, -2%, 10%, 12%, -8%. What was its…

A: Return of year-1 = 5% Return of year-2 = -2% Return of year-3 = 10% Return of year-4 = 12% Return of…

Q: geometric

A: Introduction: The term geometric mean refers to investment's average growth. In other words it is…

Q: A stock has the following returns over a 3 year period: 25%, -4%, 8%. What is this stock's geometric…

A: Geometric Average Return is the actual annual return of an investment earned during a certain period…

Q: You find a certain stock that had returns of 13.2 percent, –21.6 percent, 27.6 percent, and 18.6…

A: The formula used is shown:

Q: You have found the following historical information for DEF Company: Year 2 Year 3 Year 4 Year1…

A: First, PE ratio for each year is calculated as Price divided by earnings. Then the average of 4 year…

Q: Harvey Specter's estimated year-end dividend is D1 = P1 equired return is rs = 11.00%, its dividend…

A: In this we need to calculate the constant dividend growth model to do price of stock.

Q: A stock has annual returns of 6 percent, 14 percent, -3 percent, and 2 percent for the past four…

A: Arithmetic Average = X1 + X2 + X3 +......+XNN

Q: You find a certain stock that had returns of 15 percent, -22 percent, 23 percent, and 10 percent for…

A: Average return = total return for total period/ total period

Q: A stock has had the following prices at the end of each year for the last six year : $64.10, $74.05,…

A: The conceptual formula used:

Q: A stock has had returns of 14 percent, −18 percent, 2 percent, 33 percent, 27 percent, and 6 percent…

A: Geometric mean formula: GM =61+R1×1+R2×1+R3×1+R4×1+R5×1+R6where,Rx =returns at respective year x

Q: A stock's initial value was $ 15 and the value after two years is $25. a. Find out the holding…

A: Given: Initial Value = $15 Value after 2 years = $25 Number of period = 2 Holding period return…

Q: What was the compound average annual return of a stock that earned -16.8%, -4.8%, 1%, and 13.1% per…

A: A required rate of return of an investment that needs to grow from the starting to the ending of the…

Q: You have forecasted NICIE dividends of $5, $5.70, and $5.95 over the next three years respectively.…

A: Stock price is the present value of future dividends and terminal value at a given discount rate. It…

Q: The table given below reports last five years data on annual rates of return (HPYS) on two stocks…

A: Athematic mean is average of returns

Q: The table given below reports last five years data on annual rates of return (HPYS) on two stocks…

A: Coefficient of variation = Standard Deviation / Mean

Q: The table given below reports last five years data on annual rates of return (HPYS) on two stocks…

A: Standard deviation is measure of risk stocks with less deviation is preferred

Q: A stock has had returns of 16 percent, 13 percent, 6 percent, -14 percent, -6 percent, and 18…

A: Given the following information: Return 1 (R1) = 16% Return 2 (R2) = 13% Return 3 (R3) = 6% Return…

Q: sed on just these five years, what is the probability that this stock will lose more than 7.76…

A: In this we have to find out mean return and standard deviation and find out Z score.

Q: A stock had returns of 15.75 percent, 23.01 percent, −9.82 percent, and 9.49 percent over four of…

A: Stock returns over four years is  R1=15.75%R2=23.01%R3=-9.82%R4=9.49% Average return of 5 years is…

Q: A stock produced returns of 16 percent, 9 percent, -6 percent and 21 percent over the past four…

A: Standard Deviation refers to the variations in the actual value from that of the mean value. In…