Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

A stock has had returns of ?19.6 percent, 29.6 percent, 31.2 percent, ?10.7 percent, 35.4 percent, and 27.6 percent over the last six years. Required:

A stock has had returns of ?19.6 percent, 29.6 percent, 31.2 percent, ?10.7 percent, 35.4 percent, and 27.6 percent over the last six years.

Required:

What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).)

Arithmetic average return %
Geometric average return %
A stock has had the following year-end prices and dividends:

Year Price Dividend
1 $ 64.73
2 71.60 $ 0.68
3 77.40 0.73
4 63.67 0.79
5 73.91 0.88
6 83.75 0.95

Required:

What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).)

Arithmetic average return %
Geometric average return %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions