Question
1. Calculate the rates of return (holding period returns) for the following stocks: Stock Beginning price: P 0 Ending price: P 1 Dividend payment: D
1. Calculate the rates of return (holding period returns) for the following stocks:
Stock | Beginning price: P 0 | Ending price: P 1 | Dividend payment: D 1 |
A | 21.38 | 16.06 | 2.6 |
B | 108.74 | 118.92 | 5.25 |
C | 4.25 | 5.58 | 0.19 |
Part 1
What was the rate of return for stock A?
Part 2
What was the rate of return for stock B?
Part 3
What was the rate of return for stock C?
2. You bought Samsung stock for $45 on April 1. The stock paid a dividend of $3 on July 1, and had a price of $53. It is now Oct. 1, and the stock price is $60.
Part 1
What was the arithmetic average quarterly return?
Part 2
What was the geometric average return per quarter?
3. You've recorded the following prices and dividend payments for a stock:
Month | Stock price | Dividend |
1 | 43.28 | |
2 | 43.44 | 0.65 |
3 | 41.86 | |
4 | 44.15 | |
5 | 44.34 | 0.65 |
Part 1
What was the return in month 5?
Part 2
What was the arithmetic average monthly return?
Part 3
What was the geometric average return per month
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