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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%

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Answer:

<em>Behavioral Segmentation</em>

Explanation:

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4 0
3 years ago
Clark Oil and Gas incurred costs of $15.3 million for the rights to extract resources from a natural gas deposit. The company ex
miss Akunina [59]

Answer and Explanation:

The computation is shown below

Depletion expense per cubic feet  would be

= Total cost ÷ Total cubic feet

= $15.3 million ÷ 8 million

= $1.9125 per cubic feet

Now

Depletion for year 1

= Number of cubic feet extracted × Depletion per cubic feet

= 800,000 × $1.9125

= $1,530,000

And, for the depletion for year 2

= 1,600,000 × $1.9125

= $3,060,000

7 0
3 years ago
Evaluate Microsoft’s product and marketing evolution over the years. What has the company done well, and where did it falter?
OverLord2011 [107]

Explanation:

Microsoft is a giant technology company with worldwide influence.

Its success and reputation have ensured the company the position of the most valuable company in the world by market capital.

The popularization of the Windows Operating System, worldwide, was the product that consolidated the company as a giant in the business world. Technological companies, should focus on innovation, as each day more advances in technology appear to correct possible system errors, make the user's performance and use better and make production costs cheaper. With regard to the Operating System for computers, Microsoft has always evolved in launching new, more evolved versions, and making the previous ones obsolete for use, but one of the company's failures was to have lost the timing to develop an OS aimed at the use in cell phones, since that the company tried to enter this market, but was unsuccessful, and was defeated by its biggest competitors: Google and Apple.

8 0
4 years ago
Assume that securitization combined with borrowing and irrational exuberance in Hyperville have driven up the value of existing
iVinArrow [24]

Answer:

$120

Explanation:

Given:

• Geometric growth rate of existing financial security:

$4 to $8 to $16 to $32 to $64 to $128

• Arithmetic growth rate of underlying assests:

$4 to $6 to $8 to $10 to $12 to $14

From the values, when the price of the underlying assests is $14, the price of the existing financial security is $128.

We are told to that when values of financial secrities increased from $4 to $128, that of underlying assests also increased from $4 to $14. If patterns hold for decreases as well as for increases. Therefore to get the value of financial securities decline if the value of underlying assests suddenly and unexpectedly fell by $6, we have:

Price of underlying assests when decreased by $6 =

$14-$6 = $8.

Therefore, price of existing financial security decline wil be:

$128-$8 = $120

6 0
3 years ago
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zavuch27 [327]

Answer:<u><em> The amount and character of Daniela's gain or loss from the distribution will be $0.</em></u>

Explanation:

Given : Daniela is a 25% partner in the JRD Partnership, liquidating distribution of $16,000 cash, inventory with a $16,000 fair value (inside basis $8,000), and accounts receivable with a fair value of $8,000.

<u><em>Here, Daniela will not recognize any gain or loss on the distribution. She will instead reduce the basis of the inventory she receives in complete liquidation of her interest.</em></u>

4 0
3 years ago
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