You purchased 1000 shares of stock in Cumberland Software for $3 per share on January 1, 2006. Over the next four years you received $0.07 per share annually in dividends. On December 31, 2009 you sell all your shares of Cumberland Software for $16.50 per share. Brokerage commissions are 4% of the total transaction value when buying and selling. 1. What has been your total cumulative return percentage over the four years? 2. What has been your average annual return over the four years? Hint: Total cumulative return = [(gain or loss over the whole period net of commission + income received over the term) / amount paid for the investment including commissions] 100 a Average annual return is a time value of money problem with present value being the amount you paid for the investment, future value being the amount you received at sale of the investment, and payment being the amount of annual income. Total cumulative percentage return = 416.67% and the average annual return 51.46% Total cumulative percentage return - 528.85% and the average annual return - 52.17% Total cumulative percentage return = 535 94% and the average annual return = 55.72% Total cumulative percentage return = 317.67% and the average annual return = 41.46%