Course: Securities & Investments

1. You bought a stock nine months ago at $23 a share. Today, you sold that stock for $28.50 a share. The stock paid no dividends. What was your annualized rate of return?

A. 35.41% B. 31.80% C. 32.94% D. 28.23%

2. A company's stock had the following returns over the past five years: 12.1, 15, 7.2, 9, and 5 percent. What's the geometric average return?

A. 10.45% B. 9.60% C. 8.23% D. 7.14%