Question
XYZ Company stock had the following annual returns: 2016 - 6.7%, 2017 - 8.7%, 2018 - 9.9%, 2019 13.2% and 2020 - 2.3%. A. Calculate
XYZ Company stock had the following annual returns: 2016 - 6.7%, 2017 - 8.7%, 2018 - 9.9%, 2019 13.2% and 2020 - 2.3%. A. Calculate the average annual return for XYZ company stock for the period B. Why is the average annual return a useful piece of information, i.e. what can investor's use it for An investor invested $1,000 in XYZ Company stock on January 1, 2016. On December 31, 2020 the value of XYZ Company's stock was $1,765. A. Calculate the compound annual return for XYZ Company's stock B. Why is the compound annual return information useful to the investor, i.e. what does it tell the investor
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