Question
Brandi Inc.'s stock price at the end of each of the last 6 years is shown below. Calculate the stock return in years 1 through
Brandi Inc.'s stock price at the end of each of the last 6 years is shown below. Calculate the stock return in years 1 through 5.
Year | End-of-yearStock Price | Annual Stock Return |
---|---|---|
0 | $15.08 | |
1 | $16.78 | |
2 | $15.55 | |
3 | $19.57 | |
4 | $30.48 | |
5 | $35.89 |
In Year 2, the stock price from the previous year's price and the stock return from the previous year's return. In Year 5, the stock price from the previous year's price and the stock return from the previous year's return.
What is the (arithmetic) average stock return for Brandi's stock over this five-year period?
21.14%
20.66%
20.75%
21.25%
20.84%
What is the (geometric) average stock return for Brandi's stock over this five-year period?
19.04%
19.53%
19.13%
18.94%
19.43%
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