Question
investment An investor purchases a share of a stock at T0 for $110. At the end of the year. At T1 the investor buys three
investment
An investor purchases a share of a stock at T0 for $110. At the end of the year. At T1 the investor buys three other shares of the same stock for a total amount of $306. At T2, the investor buys two other shares of the same stock for $88.5 each. At T3 the investor sells all the shares for $145.5 each. The stock paid: $1.75, $0.55, and $2.75 dividends per share at the end of years 1, 2, and 3 respectively. What is the geometric mean of the returns?
Roddy Richards invested $1000 in Wolverine Meat Distributors (W.M.D.) five years ago. The investment had yearly arithmetic returns of -9.7%, -8.1%, 15%, 7.2%, and 15.4%. What is his total compounded return over the 5 years period?
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