Question
Please answer all parts has it is apart of one big question, thanks! Please show your work. 1) Susan Bright will get returns of 18%,
Please answer all parts has it is apart of one big question, thanks! Please show your work.
1) Susan Bright will get returns of 18%, -20.3%, -14%, 17.6%, and 8.3% in the next five years on her investment in CoffeeTown, Inc. stock, which she purchases for $73,419.66 today.
What is the arithmetic average return on her stock if she sells it five years from today?
a) 1.92%
b) 3.98%
c) 6.47%
d) 7.11%
2) Susan Bright will get returns of 18%, -20.3%, -14%, 17.6%, and 8.3% in the next five years on her investment in CoffeeTown, Inc. stock, which she purchases for $73,419.66 today.
What is the geometric average return on her stock if she sells it five years from today?
a) -2.33%
b) .59%
c) 3.67%
d) 4.88%
3) Susan Bright will get returns of 18%, -20.3%, -14%, 17.6%, and 8.3% in the next five years on her investment in CoffeeTown, Inc. stock, which she purchases for $73,419.66 today.
How much will Susan's stock be worth if she sells it five years from today?
a) 71,423.85
b) 73.419.66
c) 75,628.75
d) 80,333.40
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