A stock has the following returns over three consecutive years: -26%, 80%, and 8
ID: 2785128 • Letter: A
Question
A stock has the following returns over three consecutive years: -26%, 80%, and 86%. What is the arithmetic average?
A stock has the following returns over three consecutive years: -2%, 1%, and 121%. What is the geometric average?
A stock has the following returns over three consecutive years: 143%, 95%, and 70%. What is the appropriate average?
A stock has the following returns over three consecutive years: 19%, 64%, and -23%. What is the standard deviation of these returns?
Which of the following is true about the Efficient Market Hypothesis, EMH?
options:
There is ample evidence to confirm the strong-form EMH.
The semi-strong form EMH contains the weak-form EMH.
It is well-established (in academic research) that you can generate additional returns using price and volume pattern data.
Inside information is reflected in prices under the semi-strong form EMH.
There is ample evidence to confirm the strong-form EMH.
The semi-strong form EMH contains the weak-form EMH.
It is well-established (in academic research) that you can generate additional returns using price and volume pattern data.
Inside information is reflected in prices under the semi-strong form EMH.
Explanation / Answer
A) airthmetic Average= -26+80+86 devided by 3
= 46.67
B) geometric Average = can be calcualte by multiple of 3 numbers therfter doing cube for the same
=cube of (-2*1*121)
= -6.23
c) appropriate Average = 143+95+70 divided by 3
=102.67
d)SD =
S.D= SQUARE ROOT OF (3786/3)
35.5
Year GR AR GR-AR SQUARE OF GR-AR 1 19 20 -1 1 2 64 20 44 1936 3 -23 20 -43 1849 3786Related Questions
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