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The 12-Month Rate of Returns Over a Nine- Year Period

question 58

Short Answer

The 12-month rate of returns over a nine- year period of a particular stock is 0.099, - 0.289, 0.089, 0.226, 0.041, 0.161, 0.064, - 0.029 and 0.022. The geometric mean rate of return for this stock is ________.


Definitions:

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account.

Margin Call

A demand by a broker that an investor deposit additional money or securities to cover possible losses.

Initial Margin

The minimum amount of equity that must be provided by an investor when purchasing securities on margin, acting as a down payment on the purchase.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account to continue holding an investment, after initiating a position.

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