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Calculate the annual arithmetic mean and geometric mean return on the following security, purchase price = $33; first-year dividend = $5; price after one year
Calculate the annual arithmetic mean and geometric mean return on the following security, purchase price = $33; first-year dividend = $5; price after one year = $38; second-year dividend = $5; selling price after two years = $31. (Round intermediate calculations to 3 decimal places, e.g. 15.251% and the final answers to 2 decimal places, e.g. 15.25%.) Arithmetic average return % Geometric mean return % State which method is more appropriate for the situation.
Calculate the annual arithmetic mean and geometric mean return on the following security, purchase price =$33; first-year dividend =$5; price after one year =$38; second-year dividend =$5; selling price after two years =$31. (Round intermediate calculations to 3 decimal places, e.g. 15.251\% and the final answers to 2 decimal places, e.g. 15.25\%.) State which method is more appropriate for the situationStep by Step Solution
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