An investment advisor is considering recommending the stock of company X, where

Question

An investment advisor is considering recommending the stock of company X, where the growth rates for the stock’s price for the last 4 years are as follows: 6.18% , 11.27%, -3.14%, -2.72%? What is the (geometric) mean growth rate over this period? (6 points)

Questions 5 through 9 refer to the following. For a random sample of 50 flights from Denver to Atlanta, the table below shows the data on flight times in minutes for the first week of March. Flight Times elative in minutes) 140 150 150 160 160 170 170 180 180 190 .02 .44 .42 .08

Explanation / Answer

Year 1: 6.18% = 1.0618

Year 2: 11.27% = 1.1127

Year 3: - 3.14% = 0.9686

Year 4: - 2.72 % = 0.9728

Geometric mean = (1.0618 X 1.1127 X 0.9686 X 0.9728)1/4 = 1.11320.25 = 1.0271

So, Growth rate = 1.0271 - 1 = 0.0271

                                         = 2.71 %

So,

Answer is:

2.71 %

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.