Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 1: David has in his investment portfolio ANZ share that paid him the rate of returns of 10 %, -13%, 12%, 7% and 15%
Question 1: David has in his investment portfolio ANZ share that paid him the rate of returns of 10 %, -13%, 12%, 7% and 15% over the past five years. Required: a) Calculate the arithmetic average return of the portfolio and geometric average return of the portfolio. Explain why arithmetic average return is not good to reflect the actual return of this asset? b) If David bought 150 ANZ shares for $1500 five years ago, the current market price of the share is $85 each and the share has paid a dividend of $10/share each year since then, what is capital gain and dividend yield of this share
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started