题目解析The respective arithmetic mean and geometric mean returns of the following series of stock market returns are:Year 1 14% Year 2 6% Year 3 −5% Year 4 20% A. 8.75%; 8.62%.B. 8.90%; 8.62%.C. 8.75%; 8.34%. 正确答案:C 分享到: ...
Compound Average Return (geometric mean) Please help to find a single formula to calculate negative and positive stream of returns. The problem is that =geomean formula does not work with negative numbers. Here's an example on how to calculate geometric mean with 5 numbers: Stream of number...
The optimal geometric mean return is an important property of an asset. As a derivative of the underlying asset, the option also has this property. In this paper, we show that the optimal geometric mean returns of a stock and its option are the same from Kelly criterion. It is proved by...
m = geomean(X,vecdim) returns the geometric mean over the dimensions specified in the vector vecdim. For example, if X is a 2-by-3-by-4 array, then geomean(X,[1 2]) returns a 1-by-1-by-4 array. Each element of the output array is the geometric mean of the elements on the...
the geometric mean becomes relevant. For example, if a survey found that over the years, the economic status of a poor neighborhood is getting better, they need to quote the geometric mean of the development, averaged over the years in which the survey was conducted. The arithmetic mean will...
The geometric mean entails finding the product of the numbers and then raising that value by the reciprocal of the number of data points which contributed to the product. Formally, the geometric mean is calculated using the following equation: Geometric Mean=(∏i=1nxi)1n where xi is the ith...
If, for example, you have returns of 10%,-5%,7% and -2% in B2:B5, you may not really want to calculate the geometric mean of those values, but of 100%+10%, 100%-5%, 100%+7% and 100%-2%, and subtract 100% from the result: =GEOMEAN(100%+B2:B5)-100%. 0 Likes Reply Die...
Consider investmentreturnsand take the example used above for the geometric mean. If your portfolio returns for each of five years were 90%, 10%, 20%, 30%, and -90%, what would youraverage returnbe during this period using the calculation for the arithmetic mean?
The respective arithmetic mean and geometric mean returns of the following series of stock market returns are: Year 1 14% Year 2 6% Year 3 −5% Year 4 20% A. 8.75%; 8.62%. B. 8.90%; 8.62%. C. 8.75%; 8.34%.相关知识点: 试题来源: ...
First, if the returns do not vary much from year to year, then the arithmetic mean can be used as a quick and dirty estimate of the actualaverage annual return. Second, if the returns vary greatly each year, then the arithmetic average will overstate the actual average annual return by a...