A stock has had returns of 18.8 percent, 26.97 percent, 21.6 percent, 9.9 percen

ID: 2778258 • Letter: A

Question

A stock has had returns of 18.8 percent, 26.97 percent, 21.6 percent, 9.9 percent, 34.6 percent, and 26.8 percent over the last six years.

Required:

What is the geometric return for the stock? (Do not include the percent signs (%). Round your answers to 2 decimal places (e.g., 32.16).)

A stock has had returns of 18.8 percent, 26.97 percent, 21.6 percent, 9.9 percent, 34.6 percent, and 26.8 percent over the last six years.

Required:

What is the geometric return for the stock? (Do not include the percent signs (%). Round your answers to 2 decimal places (e.g., 32.16).)

A stock has had returns of 18.8 percent, 26.97 percent, 21.6 percent, 9.9 percent, 34.6 percent, and 26.8 percent over the last six years.

Required:

What is the geometric return for the stock? (Do not include the percent signs (%). Round your answers to 2 decimal places (e.g., 32.16).)

Geometric return for the stock = ((1-18.8%) *(1+26.97%) *(1+21.6%)*(1-9.9%)*(1+34.6%)*(1+26.8%))^(1/6) -1

Geometric return for the stock = 11.56%

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