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Question 1: You own shares of Dunkin' Donuts (DNKN) & you are evaluating the stock's performance over the last 10 years. Calculate the i) average
Question 1: You own shares of Dunkin' Donuts (DNKN) & you are evaluating the stock's performance over the last 10 years. Calculate the i) average arithmetic rate of return ii) average geometric rate of return & ii) the average continuous rate of return. Show your work in the open space to the right, but link the green shaded cells for your final answers. Feel free to use extra cells to calculate as needed. Time Income (workspace around here..) to ti Asset Value 100 102 t2 104 5 4.5 5.5 t3 14 106 109 6 ts 107 5 t6 108 106 t7 5.5 3 5 6 ts to 109 111 113 t10 6.5 Arithmetic ave/yr. Geometric ave/yr. Continuous rate/year Bonus: What is your continuously compounded rate of return if you make an investment of $100 that grows in value to exactly $165 in 10 years? What is your continuously compounded rate of return if you make an investment of $165 that falls in value to exactly $100 in 10 years
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