Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that you buy 100 shares of CompanyA for $80 at the beginning of 2021. The company does not pay any dividends. The stock price

Assume that you buy 100 shares of CompanyA for $80 at the beginning of 2021. The company does not pay any dividends. The stock price is $100 at the end of 2021, $120 at the end of 2022, and $150 at the end of 2023. Suppose the stock price drops to $100 by the end of 2024 and you sell all 100 shares. In this case, what is the geometric mean rate of return over 4 years?

A) 0.0%.

B) 1.0%.

C) 5.7%.

D) 9.2%.

E) 34.5%.

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

Recommended Textbook for

The Financial System Financial Regulation And Central Bank Policy

Authors: Thomas F. Cargill

1st Edition

1107035678, 9781107035676

More Books

Students also viewed these Finance questions

Question

Please help me evaluate this integral. 8 2 2 v - v

Answered: 1 week ago

Question

What perspective or approach to talent would be appropriate?

Answered: 1 week ago

Question

What policies and practices for talent development are needed now?

Answered: 1 week ago