The JCI Index showed the following Rs for a 6-year period: 11.1%, -5.2%, 20.3%, 26.7%, -12.4%, and 2,2%. (a) Calculate the arithmetic mean return for the 6-year period. (b) Calculate the geometric mean return for the 6-year period.
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- Please calculate the Sharpe measure for the S&P 500 over the last ten years if the standard deviation was 8 percent and the return was 14 percent?The stock yields for three years are given as 0.15, -0.10 and 0.12, respectively. Which is the geometric mean return accordingly?Over the past 4 years an investment returned 22%, -5%, -20%, and 9%. What is the standard deviation of returns?
- An investment produced annual rates of return of 5%, 12%, 8% and 11% respectively over the past four years. What is the (sample) standard deviation of these returns? A. 3.8% B. 3.6% C. 3.2% D. 2.7%What is the approximate standard deviation of returns if over the past 4 years an investment returned 8.0%, -12.0%, -12.0%, and 15.0%?A stock’s returns for the past 3 years were 10%, 215%, and 35%.What is the historical average return? (10%) What is the historicalsample standard deviation? (25%)
- A)The following are monthly percentage price changes for four market indexes. Month DJIA S&P 500 Russell 2000 Nikkei 1 0.03 0.02 0.04 0.04 2 0.07 0.06 0.10 −0.02 3 −0.02 −0.01 −0.04 0.07 4 0.01 0.03 0.03 0.02 5 0.05 0.04 0.11 0.02 6 −0.06 −0.04 −0.08 0.06 Compute the following. a. Average monthly rate of…Stock prices over 5 months are observed to be $110.00, $115.00, $98.00, $107.00, and $112.00. What is the annualized standard deviation of the continuously compounded returns? Only using a calculator.Stock Z has the following returns for last five years. Calculate the arithmetic average returnand geometric return for the stock.Returns: 10%, 15%, -8%, -9% and 12%
- Your portfolio has provided you with returns of 4.65 percent, 2.33 percent, 11.85 percent, and -15.97 percent over the past four years, respectively. What is the geometric average return (in percent) for this period? Answer to two decimalsDuring the past 5-year, the monthly average return and standard deviation of Netflix (NFLX) stock were 3.5% and 10%, respectively. For the same period, the monthly average return and standard deviation of Verizon (VZ) were 0.6% and 4.6%, respectively. The correlation between NFLX and VZ was -0.1. Assume that the monthly risk-free rate is 0.1%. ) What is the Sharpe ratio for NFLX? What is the Sharpe ratio for VZ? Show your calculation steps briefly and clearly. Find the minimum-variance portfolio (MVP), i.e., the weight of NFLX and VZ in the MVP. You do not need to show your calculation steps for this subquestion. Find the optimal risky portfolio P*, i.e., the weight of NFLX and VZ in P*. You do not need to show your calculation steps for this subquestion. Calculate the Sharpe ratio for the optimal risky portfolio P*. Verify that P* offers a higher Sharpe ratio than NFLX and VZ.Given the following historical returns, calculate the average return and the standard deviation: Year Return 1 14% 2 10% 3 15% 4 11%