Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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

Jan 1

$33.71

Feb 5

$30.93

$0.17

May 14

$31.37

$0.21

Aug 13

$31.15

$0.17

Nov 12

$37.12

$0.18

Dec 31

$40.31

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Private Equity Toolkit A Step By Step Guide To Getting Deals Done From Sourcing To Exit

Authors: Tamara Sakovska

1st Edition

1119697107, 978-1119697107

More Books

Students also viewed these Finance questions