The excess actualreturnover the capital asset pricing model-determined expectedreturnmarket is called an ‘‘abnormalreturn.’’ The cumulation of the daily abnormalreturns over the time period under observation is the CAR. The term CAR(-5, 0)means the CAR calculated from five days before the a...
but you will have to think for a while to get an idea regarding the annual return of this group of stocks as a whole. When the arithmetic average is provided in addition to this information, it can save you the thinking. The mean (arithmetic average) return of our basket of 10 stocks...
When averaging percentages (as in the case of portfolio returns year over year), the geometric mean is required. The geometric average return is also sometimes known as the compound annual growth rate or time-weighted rate of return since it takes the compounding effect of time on the ...
andthegeometricmeanreturniszero(becausethevalueoftheindexattheendofthetwoperiodsisthesameasatthebeginning).5.Thearithmeticmeanmaydifferaccordingtothetimeperiodused:thearithmeticmeanreturncalculatedfromannualdatamaybelessthanthearithmeticmeanreturncalculatedfrommonthlydata(adjustedtoannualequivalentbasis).Thisisobviously...
mean use the following data to answer questions 54 and 55. the annual returns for fjws common stock over the years 2005, 2004, 2005, and 2006 were 15%, 19%,-8%, and 14%. what is the geometric mean a,9.45%. b,14.21%. c,it cannot be determined because the 2005 return is ...
arithmetic mean arithmetic overflow arithmetic progression arithmetic register References in periodicals archive ? In addition to these two processes, bees also had to perform the arithmetic operations in working memory - the number 'one' to be added or subtracted was not visually present. Can bees ...
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Given rates of return on an index for the past 10 years, the arithmetic mean of these returns is: A. statistically the best estimator of the compound annual rate of return over multiple periods. B. statistically the best estimator of the next year’s rate of return. C. the compound annua...
Given rates of return on an index for the past 10 years, the arithmetic mean of these returns is:A. statistically the best estimator of the compound annual rate of return over multiple periods.B. statistically the best estimator of the next year’s rate of return.C. the compound annual ...
The result is an average annual return of -20.08%. Key Differences Arithmetic Mean We used an arithmetic mean for a moving average because the closing prices have no correlation. One closing price may be higher or lower than the next, but there’s no intrinsic relationship. However, th...