Question
On august 14, 2014 Harry Harrison purchased 1000 shares of the BDF corporation at $87.56 per share, which he planned to sell on August 14
On august 14, 2014 Harry Harrison purchased 1000 shares of the BDF corporation at $87.56 per share, which he planned to sell on August 14th, 2015.
However, when that date came around, the price of the stock had dropped to $62.32 per share and therefore Harry decided not to sell on that date. On august 14,2016 Harry sold all his shares in BDF at a price of $75 per share. Harry did not receive any dividends from the shares during his holding period. Calculate his Arithmetic Average Annual Rate of Return and the Geometric Average Annual Rate of Return for his Holding Period.
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