Question
Suppose that you bought GE 6 years ago at a price of $128 per share. The price has decreased to $75... a.) What is Standard
Suppose that you bought GE 6 years ago at a price of $128 per share. The price has decreased to $75...
a.) What is Standard Return for GE's Stock over the entire 6 year period assuming that GE paid no
dividends over the 6 years?
b.) What is the Log Return for GE's stock over the entire 6 year period assuming that GE paid no
dividends over the 6 years?
c.) What is Standard Return for GE's Stock over the entire 6 year period assuming that GE paid $2.50 in
dividends in each of the 6 years?
d.) What is the Log Return for GE's stock over the entire 6 year period assuming that GE paid $2.50 in
dividends in each of the 6 years?
e.) What impact did dividends have on GE's calculated returns?
f.) Find the annually-compounded year-by-year return for parts a-d
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