Can someone show me the work to get answers 8 c,d and 9 c,d? Use the following i
ID: 2813714 • Letter: C
Question
Can someone show me the work to get answers 8 c,d and 9 c,d?
Use the following information to answer questions 8 through 12. Stock Ford GM January 5.3% 8.9% February -10.1% | 5.4%. March -14.2% 7.5% May -21% 112.9% June pn 6.7% 9.7% -20.6% 7.3% 8. Looking at Ford's stock What is its arithmetic mean monthly return? 3.95% what is its geometric mean monthly return? 3.63% What is its annualized return? Arithmetic APR = 47.4%, Geometric APR- 43.61% What is the variance of its returns? 0.00763 What is the standard deviation ifts returns? 8.74% a. b, c. d. e. 9. Looking at GM's stock what is ts arithmetic mean monthly return? 3.57% what is its geometric mean monthly return? 2.90% What is its annualized return? Arithmetic APR-42.8%, Geometric APR- 34.75% What is the variance of its returns? 0.014647 what is the standard deviation if its returns? 12.10% a. b, c. d. e,Explanation / Answer
8c)
Monthly return = 3.95%
Annualised return =12 * 3.95% = 47.4%
Geometric monthly return = 3.6338%
Annualised return = 12* 3.6338% = 43.61%
d)Variance of the return = ((5.3%-3.95%)2 + (-10.1%-3.95%)2 + (14.2%-3.95%)2 + (6.7%-3.95%)2 + (-2.1%-3.95%)2 + (9.7%-3.95%)2)/(6-1) = 0.00763 or 7.63%
9 c)
Monthly return = 3.57%
Annualised return =12 * 3.57% = 42.8%
Geometric monthly return = 2.8960%
Annualised return = 12* 2.8960% = 34.75%
d)Monthly return = 3.57%
Variance of the return = ((8.9%-3.57%)2 + (5.4%-3.57%)2 + (7.5%-3.57%)2 + (-20.60%-3.57%)2 + 12.90%-3.57%)2 + (7.3%-3.57%)2)/(6-1) = 0.01464
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