SAT College

The rate of return of a Fortune 500 company over the past 15 years are: 3.17%, 4.43%, 5.93%, 5.43%, 7.29%, 8.21%, 6.23%, 5.23%,
4.34%, 6.68%, 7.14%, -5.56%, -5.23%, -5.73%, -10.34%

1. Compute the arithmetic mean rate of return per year.
2. Compute the geometric mean rate of return per year for the first four years.
3. Construct a boxplot for the rate of return. What is the shape of the distribution for the rate of return?

Answers

Answer 1

1. The arithmetic mean rate of return per year is approximately 3.96%. 2. The geometric mean rate of return per year for the first four years is approximately 1.06%. 3. The shape of the distribution for the rate of return is negatively skewed.

1. To compute the arithmetic mean rate of return per year, we sum up the rates of return for the 15 years and divide by the number of years.

Arithmetic mean = (3.17% + 4.43% + 5.93% + 5.43% + 7.29% + 8.21% + 6.23% + 5.23% + 4.34% + 6.68% + 7.14% - 5.56% - 5.23% - 5.73% - 10.34%) / 15

             = 59.45% / 15

             = 3.9633%

Therefore, the arithmetic mean rate of return per year is approximately 3.96%.

2. To compute the geometric mean rate of return per year for the first four years, we multiply the individual rates of return and then take the fourth root.

Geometric mean = (1 + 0.0317) × (1 + 0.0443) × (1 + 0.0593) × (1 + 0.0543)^(1/4)

             = (1.0317 × 1.0443 × 1.0593 × 1.0543)^(1/4)

             = 1.0425^(1/4)

             = 1.0106 - 1

             = 1.06%

Therefore, the geometric mean rate of return per year for the first four years is approximately 1.06%.

3. To construct a boxplot for the rate of return, we need to determine the five-number summary: minimum, first quartile (Q1), median (Q2), third quartile (Q3), and maximum.

The boxplot provides a visual representation of the distribution and identifies outliers.

The five-number summary is as follows:

Minimum: -10.34%

Q1: -5.73%

Median: 4.34%

Q3: 6.23%

Maximum: 8.21%

The boxplot will show a box with the median (Q2) as a line inside it, with the lower end of the box at Q1 and the upper end at Q3. The whiskers extend from the box to the minimum and maximum values, respectively. Any data points beyond the whiskers are considered outliers.

Based on the given data, the shape of the distribution for the rate of return is negatively skewed. This is evident from the fact that the mean is lower than the median, and the presence of negative returns pulls the overall distribution towards the left.

The outliers, represented by the minimum and maximum values, also contribute to the asymmetry of the distribution.

For more such questions geometric,click on

https://brainly.com/question/31296901

#SPJ8

Related Questions

Other Questions
2. Consider two types of income support programs. One is a sort of "universal basic income": each individual gets a transfer of $48 per day whether or not they work, but they may still work at the market wage, if they wish, and they will continue to receive a $48 transfer in addition to any income they earn if they choose to work. The other is a "living wage" kind of program: all individuals who are working for a market wage less than $10 per hour are given a subsidy per hour worked to raise their effective hourly pay to $10 per hour (but they don't receive any other transfers). Suppose people have a total of 24 hours per day to allocate between labor and leisure. a. Diagram, on one graph, the budget constraints for choosing leisure and goods under these two different programs, with leisure on the horizontal axis and total income (available to be spent on goods) on the vertical axis. Assume that the market wage is $8 per hour. (10) The lipids within the fluid mosaic of the plasma membranes are held in place by:a. covalent bonds.b. hydrogen bonds.c. ionic bonds.d. hydrophobic interactions.e. disulfide bridges. An aeroplane has 30 seats. 95% of people show up for their journey. You have been hired by the travel company to recommend how many tickets they sell for the aeroplane. Stating your assumptions clearly and explaining the risk to the company of having a passenger who can't get on the plane show how many tickets you would sell. The financial statement that reports revenues and expenses is the O A. Statement of changes in equity OB. Statement of financial position O C. Statement of income D. Statement of cash flow What is the Phase constant? Express your answer in radians to three significant figures. I know the phase constant is 3pi/2 but I don't how to convert it to three sig figs. Please help! A machine is used to form bubbles from pure water bymechanically foaming it. The surface tension of water is 0:070 Nm-1. What is the gauge pressure inside bubbles of radius 10 m? In December 2020, following an investigation by the Competition and Markets Authority (CMA), 2 UK-based companies who supply groundworks products to some of the nations largest construction firms, have been fined 15m for colluding illegally to reduce competition and maintain or increase prices for over 2 years. This involved sharing confidential information on future pricing and commercial strategy and monitoring each others prices.a) Use economic theory to explain how firms can sustain collusion in the market when they interact repeatedly.b) When does economic theory suggest that collusion is more likely to be successful?c) How does information sharing and monitoring help sustain the collusion in the above case? what instrument is jack teagarden most famous for playing? One of the core job characteristics in the Job Characteristics Model of job enrichment is: O a. affiliation. O b. task division. O c. power. O d. skill variety. A politician is speaking in a public debate and employs make-up artists, fashion advisors, and speech trainers to improve her presentation and credibility. Her approach emphasises which component of persuasion? O a. The message O b. The source O c. The context O d. The recipient Which of the following situations is best analysed using equity theory? O a. Cindy likes the people she works withO b. Karen gets a good salary considering her needs O c. Beth gets more money than Liz even though their jobs are essentially the same and both work equally hard O d. Liz is happy with her job because it is challenging Intrinsic work rewards: O a. result directly from task accomplishment. O b. are controlled externally by supervisors.O c. are controlled by co-workers. O d. result directly from pay. Which of the following is a MBTI orientation? O a. Locus of control O b. Thinking verses feeling O c. Conscientiousness O d. Openness to experience Expresses similar traits to psychopathy but individuals develop these traits as a result of poor parenting and other environmental factors. O a. Sadism O b. Sociopathy O c. Masochism O d. Crimonopathy Bias (in relation to cognitive ability testing): O a. Is none of the above. O b. Is a statistical term relating to errors of prediction. O c. Is a value judgement. O d. Relates to the extent to which the test taker has had the opportunity to become familiar with the subject matter. Which does not describe someone with a Type A personality?O a. Impatience with anything that interferes with goal attainment O b. Workaholic tendenciesO c. Unlikely to react in a hostile or aggressive manner O d. Constant feeling of time urgency Tele Ltd has a beta of 1.4 and is trying to calculate its cost of equity capital. If the risk-free rate of return is 5 percent and the market risk premium (market return minus risk-free rate) is 6 percent, then what is the rate of market return? A. 15.14% B. 10.60% C. 11.00% D. 11.20% Required information [The following information applies to the questions displayed below.] Shadee Corp. expects to sell 650 sun visors in May and 350 in June. Each visor sells for $18. Shadee's beginning and ending finished goods inventories for May are 75 and 40 units, respectively, Ending finished goods inventory for June will be 60 units. Each visor requires a total of $3.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 29 closures on hand on May 1,18 closures on May 31 , and 23 closures on June 30 and variable manufacturing overhead is $2.00 per unit produced. Suppose that each visor takes 0.20 direct labor hours to produce and Shadee pays its workers $11 per hour. Required: 1. Determine Shadee's budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is \$4) 2. Compute the Shadee's budgeted cost of goods sold for May and June. Complete this question by entering your answers in the tabs below. Compute the Shadees budgeted cost of goods sold for May and June. (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.) Cazenovia is in the midst of a bad recession, and its Congress has placed economic recovery at the top of its political agenda. Different expansionary and will not accept any proposal that increases the deficit by more than $5 million. After lengthy discussions, these are the final proposals: Plan A: Spend $5 million on highways Plan B: Reduce taxes by $5 million Assume the economy of Cazenovia is characterized by the following four equations in the short run: YC=C+1+G+NX=C 0 +C Y (YT)1NX=I 0 (a constant) =0 where C 0 =50 and C Y =0.8. Using the government expenditure multiplier from the simple model presented in the chapter, the plan Y spend $5 million on highways (GDP) by $ million. (click the following icon for help answering this question)2. Using the government taxation multiplier from the simple model presented in the chapter, the plan to reduce taxes by $5 million will increase Y (GDP) by $enter your response here million. (click the following icon for help answering thisquestion)3. The plan that appears to be the most effective in achievingCongress's goal is to ____________.A.spend $5 million on highways.B.reduce taxes by $5 million.C.both are equally effective.D.neither achieves the goal of Congress. Question 13 0.1 pts In a two-slit experiment, monochromatic coherent light of wavelength 600 nm passes through a pair of slits separated by 2.20 105 m. At what angle away from the centerline does the second dark fringe occur? 4.70 O 2.34 O 3.94 3.51 O 1.17 0.1 pts Question 14 A two-slit arrangement with 60.3 um separation between the slits is illuminated with 537.0-nm wavelength light. If a viewing screen is located 2.14 m from the slits find the distance on the screen from the first dark fringe on one side of the central maximum to the second dark fringe on the other Since his spouse passed away three years ago, Bill has been the sole provider for his fifteen year old son, Chad. Bill earns a very modest income. He wants his son to have enough money to get through university and become independent by age of twenty five. What type of life insurance policy would be the best solution for Bill's situation? Select one: a, A 10 year term life insurance policy on Bill's life. b. A 10 year term joint first to die life insurance policy. c. A permanent life insurance policy on Bill's life. d. A 10 year term life insurance policy on Chad's life. True or False: Horizontal communication flows within and between work units. True False True or False: The grapevine is the unofficial communication system of the informal organization, a network of in-person and online gossip and rumor. True False True or False: Controlling is monitoring performance, comparing it with goals, and taking corrective action as needed. True False True or False: The classical viewpoint applied the scientific study of work methods to improving the productivity of groups of workers. True False An electric dipole is located at the origin consists of two equal and opposite charges located at m and m. The electric field at m has a magnitude of 1 N/C. What is the approximate magnitude of the electric field at m 1.00 N/C 0.13 N/C 0.50 N/C 0.25 N/C None of the above What is the medium for propagation of sound What treatments have been shown to help to improve a patientsoptimism? The scenario is designed to help you determine and evaluate thepayment amount of a car loan and a mortgage, based on theassumption that your household income is $36,000 per year or $3,000per month. Night Shades, Incorporated, manufactures biotech sunglasses. The variable materials cost is $12.14 per unit, and the variable labor cost is $6.89 per unit. O points a. What is the variable cost per unit? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Suppose the company incurs fixed costs of $845,000 during a year in which total production is 210,000 units. What are the total costs for the year? (Do not round intermediate calculations.) c. If the selling price is $49.99 per unit, does the company break even on a cash basis? If depreciation is $450,000 per year, what is the accounting break-even point? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Skipped Print a. Variable cost b. Total cost c. Cash break-even point c. Accounting break-even point units units