Calculate the arithmetic average annual return calculate


1. We have the following information for the XYZ stock:

              Year          Annual Return

              2014             10%

              2015             -15%

              2016             15%

              2017          20%

a. Calculate the arithmetic average annual return.

b. Calculate the geometric average annual return.

c. Calculate the standard deviation of the returns.

d. If $1000 is invested in the stock at the start of 2014, how much will it become by year-end 2017?

2. An investor invested $1000 in a mutual fund at the start of 2009. At year-end 2017, this investment grew to $3500. How much is the geometric annual return during this holding period?

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Financial Management: Calculate the arithmetic average annual return calculate
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