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# A stock had returns of 19 percent, 18 percent, 17 percent, 8 percent, 16 percent, and -1 percent over the last six years. What is the arithmetic

1. A stock had returns of 19 percent, 18 percent, 17 percent, 8 percent, 16 percent, and -1 percent over the last six years.
2. What is the arithmetic return for the stock?
3. What is the geometric return for the stock?

Question 2

Recession: Prob State of Economy: 0.20 -- Stock A: 0.06 -- Stock B: -0.23

Boom: Prob State of Economy: 0.20 -- Stock A: 0.13 -- Stock B: 0.31

Normal: Prob State of Economy: 0.60 -- Stock A: 0.07 -- Stock B: 0.13

Calculate the expected return for Stock A.

Calculate the expected return for Stock B.

Calculate the standard deviation for Stock A.

Calculate the standard deviation for Stock B.

Answer 1) Arithmetic return for the stock = 12.83% Geometric return for the... View the full answer

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