Question 1D:

Ten annual returns are listed in the following table:

-19.2Return (%)

-19.2

16.5

17.6

-49.3

43.5

1.2

-16.1

45.6

44.9

-3.3

a. What is the arithmetic average return over the 10-year period?

b. What is the geometric average return over the 10-year period?

c. If you invested $100 at the beginning, how much would you have at the end?

a. What is the arithmetic average return over the 10-year period?

The arithmetic average return over the 10-year period is

enter your response here%.

(Round to two decimal places.)

b. What is the geometric average return over the 10-year period?

To find the geometric average return, use the following formulas.

First find the future value of investing $1 today, using the following formula:

FV=$1((1+R1)1+R2)(1+RT))

Then use the following formula and solve for R:

FV=$1(1+R)10

The geometric average return, R, over the 10-year period is %. (Round to four decimal places.)

c. If you invested $100 at the beginning, how much would you have at the end?

If you invested $100 at the beginning, at the end you would have $. (Round to the nearest cent.)

Question 1E:

Using the data in the table to the right, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid.

Date	Price	Dividend
1/2/03	$33.98	-
2/5/03	$29.05	$0.18
5/14/03	$31.28	$0.19
8/13/03	$32.99	$0.19
11/12/03	$36.84	$0.21
1/2/04	$40.77	-

Return for the entire period is %. (Round to four decimal places.)

Question 1F: Using the data in the table to the right, calculate the dividend yield and your capital gain from investing in the stock from January 1 to December 31.

Date	Price	Dividend
1/2/03	$34.97	-
2/5/03	$29.69	$0.22
5/14/03	$29.56	$0.17
8/13/03	$30.63	$0.18
11/12/03	$39.68	$0.21
1/2/04	$43.03	-

Calculate the return for each subperiod below: (Round to five decimal places. Note: Input dividend yield and capital gain as decimal numbers.)

Date	Price	Dividend	Dividend Yield	Capital Gain
2/5/03	$29.69	$0.22
5/14/03	$29.56	$0.17
8/13/03	$30.63	$0.18
11/12/03	$39.68	$0.21
1/2/04	$43.03	$0.00