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Chapter 10 Question 10.21: Arithmetic and Geometric Returns Input area: A stock has had the following end-of-year retums. What are the anthmetic and geometric average

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Chapter 10 Question 10.21: Arithmetic and Geometric Returns Input area: A stock has had the following end-of-year retums. What are the anthmetic and geometric average retums for the stock? Year Price $ Dividend 1 $ 64.10 2 $ 74.05 $ 1.10 1 3 $ 67.61 $ 1.25 4 $ 76.25 $ 1.45 5 $ 82.70 $ 1.60 6 $ 93.15 S 1.75 Price Dividend 1 1 Output area: Capital Gains Yield #DIV/0! Dividend Yield #DIV/0! Total Return #DIV/0! Year 1 to 2 2 to 3 3 to 4 4 to 5 5 to 6 Arithmetic return DC Geometric return #DIV/0

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