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5. From the year-end prices and dividends below, compute the arithmetic and geometric average returns for the stock. Hint: compute the holding period returns first
5. From the year-end prices and dividends below, compute the arithmetic and geometric average returns for the stock. Hint: compute the holding period returns first (there will only be 5 holding period returns).
Period | Stock Price | Dividend | Holding Period Return |
1 | $43.15 | ||
2 | $48.13 | $0.45 | |
3 | $57.05 | $0.49 | |
4 | $45.13 | $0.55 | |
5 | $52.05 | $0.62 | |
6 | $61.13 | $0.68 |
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