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The annual returns for XYZ Inc. for the past five years were: 5%, 10%, -6%, -8.…

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Wize University Introduction to Finance Textbook > Risk, Return & Portfolio Theory

Average Returns and Standard Deviation

3 Activities

The annual returns for XYZ Inc. for the past five years were: 5%, 10%, -6%, -8.5%, and 14%. What are the arithmetic and geometric average annual returns for XYZ Inc. over the five-year period?
Arithmetic Mean
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Geometric Mean
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More Average Returns and Standard Deviation Questions:
You purchased a stock for $34 three years ago. The price of the stock increased by $1.88 in the first year, then decreased by $2.89 in the second year, and today is trading at $43.90.
You received a dividend of $0.15 in year 1, $0.20 in year 2 and $0.25 in year 3.
What is the arithmetic average annual return?
You purchased a stock for $34 three years ago. The price of the stock increased by $1.88 in the first year, then decreased by $2.89 in the second year, and today is trading at $43.90.
You received a dividend of $0.15 in year 1, $0.20 in year 2 and $0.25 in year 3.
What is the standard deviation of the annual return?
You purchased a stock for $34 three years ago. The price of the stock increased by $1.88 in the first year, then decreased by $2.89 in the second year, and today is trading at $43.90.
You received a dividend of $0.15 in year 1, $0.20 in year 2 and $0.25 in year 3.
What is the geometric average annual return?
The following table shows the closing prices and monthly returns of JOK Inc. in the first 6 months of this year:
What is the return in June if the geometric average monthly return is 8.22% and wha it the closing price of the stock in June?
The following table shows the closing prices and monthly returns of ACME Inc. in the first 6 months of last year:
Calculate the monthly geometric and arithmetic average returns.