Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock has had the following year-end prices and dividends: Year Price Dividend 1 $ 64.78 2 71.65 $ 0.69 3 77.45 0.74 4 63.72

A stock has had the following year-end prices and dividends:

Year Price Dividend
1 $ 64.78
2 71.65 $ 0.69
3 77.45 0.74
4 63.72 0.80
5 74.01 0.89
6 84.25 0.96

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 to Expert-Tailored 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