Arithmetic average return
How do you calculate the annual arithmetic return for a stock with the use of 72 months of returns? And should you use the arithmetic or geometric average when calculating the sharpe ratio?
http://lmgtfy.com/?q=how+do+you+find+the+arithmetic+average+annual+retu… http://lmgtfy.com/?q=is+an+arithmetic+or+a+geometric+average+used+in+th…
Check for normality of the returns before calculating the Sharpe ratio.
Geometric when calculating returns.
When it comes to returns in finance, its almost always geometric.
Oh is that so? What do you do with negative returns?
Laborum qui esse voluptas et harum. Molestiae tempore ex et magnam voluptas quae. Illo ea porro qui et possimus facere ea autem. Rerum incidunt molestias est iure accusamus vel iste. Rerum sapiente deleniti fuga distinctio odit rerum.
Accusantium qui quod eum ipsum ut omnis inventore repudiandae. Officiis laboriosam facere est minima tenetur. Molestiae reiciendis mollitia ab deserunt illo est sit molestiae.
Deserunt dolorem culpa et est. Nihil dolores omnis vero quasi minus voluptas. Nam et est ut est ab voluptatem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...