1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
alina1380 [7]
3 years ago
9

A stock had returns of 12 percent, 16 percent, 10 percent, 19 percent, 15 percent, and -6 percent over the last six years. What

is the geometric average return on the stock for this period?
Business
1 answer:
OleMash [197]3 years ago
6 0

Answer:

10.68%

Explanation:

Data provided in the question:

Returns on stock : 12%, 16%, 10%, 19%, 15%, -6%

Now,

Geometric average return on the stock is calculated as:

Geometric average return = ({(1 + r_1)\times(1 + r_2).......\times(1 + r_n)})^\frac{1}{n}- 1

Thus,

For the given returns on stock

Geometric average return

=[ (1 + 0.12)\times(1 + 0.16)\times(1 + 0.10)\times(1 + 0.19)\times(1 + 0.15)\times(1 + (- 0.06)) ]^{\frac{1}{6}}-1

= [ 1.12\times1.16\times1.10\times1.19\times1.15\times0.94 ]^{\frac{1}{6}}-1

=  [1.8384056768]^{\frac{1}{6}}-1

= 1.1068 - 1

= 0.1068

or

= 0.1068 × 100%

= 10.68%

You might be interested in
The city of Animaltown plans to build a new bridge across the river separating the two halves of the city for use by its residen
goldenfox [79]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

7 0
3 years ago
Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt–equity ratio of .75. The cost of equity is 11.6 p
raketka [301]

Answer:

the capital structure weight of the firm's equity will be 57.14 %.

Explanation:

Weighted Average Cost of Capital is the return that is required by the providers of long term sources of finance.

A debt–equity ratio of 0.75 means:

Debt : Equity = 0.75 : 1

The Total Ratio will be = 0.75 + 1.00

                                     = 1.75

Therefore, the  capital structure weight of the firm's equity will be :

Equity Weight = Equity Ratio ÷ Total Ratio

                       = 1.00 ÷ 1.75

                       = 0.5714 or 57.14 %

7 0
3 years ago
A customer owns shares of restricted stock and now intends to sell them. if the proper forms are filed with the sec, the custome
lapo4ka [179]

A customer owns shares of restricted stock and now intends to sell them. if the proper forms are filed with the sec, the customer may sell these shares Over a 90-day period.

The stock exchange is a marketplace where securities, commodities, derivatives, and other financial instruments are traded. The central function of an exchange is to ensure fair and orderly trading and the efficient dissemination of price information regarding securities trading on that exchange.

The exchange enables businesses to raise capital and investors to make informed decisions based on real-time pricing information. An exchange can be a physical location or an electronic trading platform. Bitcoin He is like one stock and advisers do not recommend investing the majority of his portfolio in one company. Planners suggest that if you're passionate about Bitcoin, don't invest more than 1% to 10% in it at most.

Learn more about stock here

brainly.com/question/25818989

#SPJ4

6 0
2 years ago
List four people you know who would be good references to include on a job application. What is their relationship to you? Expla
kobusy [5.1K]

Answer:

Explanation:

Someone you have worked with previously (a coworker). They would be able to speak for how well you work with other people, how you contribute to the environment etc.

Boss from previous job. They can testify to the quality, quantity, regularity and consistency of work + how responsible and dependant you are.

Someone you do volunteer work with or anything extra-curricular related to job. Shows passion and character outside of a professional environment.

A teacher (if its your first job), who can show how well you learn new skills and how willing you are to be critiqued and improve.

3 0
3 years ago
Last year Canada’s economy had a surge in exports and increased demand for additional economic outputs. Because of the great dem
Artyom0805 [142]

Answer:

Neoclassic economists believe that both wages and prices are sticky (hard to change) only  int he short run. In the long run, both prices and wages will adjust to new economic conditions.

In this particular case, neoclassic economists will predict that even though wages are starting to rise, in the long run the equilibrium wage will be higher.

Long run and short run are economic concepts that do not refer to a given time period, e.g. long term in accounting means more than 1 year, but long run in economics may take years to come.

Long run refers to the amount of time it takes for an economic variable to adjust to economic changes.

If Canada's increase in labor costs is paired with an increase in productivity (usually new technologies), then the economy should be able to grow since private consumption and investment will increase due to higher wages.

Explanation:

6 0
3 years ago
Other questions:
  • Your business plan calls for utilizing a computerized lathe. The lathe costs $12,000. If you borrow the money to buy it, you wil
    6·1 answer
  • How does purchase a car affect the economy?
    15·1 answer
  • Omar, an individual in the 37% tax bracket, wants to shift some of his income to a new corporation in order to take advantage of
    8·1 answer
  • You find a fossil, and through careful study you find that only one-sixteenth of the carbon-14 that it once contained is still r
    7·1 answer
  • the 2020 income statement of wasmeier corporation showed net income of $480,000 and a loss from discontinued operations of $120,
    14·1 answer
  • 1. A company acquires all of the assets and liabilities of another company. Which statement is false? A. The acquired company no
    14·1 answer
  • In reference to auto insurance, what is gap coverage<br>​
    7·2 answers
  • Your broker suggests that the stock of DUH is a good purchase at $25. You do an analysis of the firm, determining that the recen
    14·1 answer
  • Plz help!!
    8·2 answers
  • Azule Co. manufactures in two sequential processes, cutting and binding. The two departments report the information below for a
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!