Answered step by step
Verified Expert Solution
Question
1 Approved Answer
At time = 0 you purchase 100 shares of a stock for the market price of $12 per share. At time = 1 the stock
At time = 0 you purchase 100 shares of a stock for the market price of $12 per share. At time = 1 the stock is worth $15 per share. Sometime after time = 1, but before time = 2, the stock has a 3:1 split. At time = 2 you sell all your shares for the market price of $8 per share. What is your geometric average return per year?
A) 25.0%
B) 26.5%
C) 41.4%
D) 42.5%
E) 100.0%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started