1. A stock has had the following year-end prices and dividends:Dividend ($)Year123456Price ($)93.7594.4295.593.2494.6597.91.381.361.721.761.95What is the geometric average return for the stock? Answer as a percentage to two decimals (ifyou get -0.0435, you should answer -4.35).

Average return:A financial term known as the average return measures the typical profit or loss on…

1. A stock has had the following year-end prices and dividends: Year 1 2 3 4 5 6 Price ($) 93.75 94.42 95.5 93.24 94.65 97.9 Dividend ($) 1.38 1.36 1.72 1.76 1.95 What is the geometric average return for the stock? Answer as a percentage to two decimals (if you get -0.0435, you should answer-4.35).

1. A stock has had the following year-end prices and dividends: Year 1 2 3 4 5 6 Price ($) 93.75 94.42 95.5 93.24 94.65 97.9 Dividend ($) 1.38 1.36 1.72 1.76 1.95 What is the geometric average return for the stock? Answer as a percentage to two decimals (if you get -0.0435, you should answer-4.35).

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

Q: Stock XYZ started at $415. It went up to $500. What is the percent increase or decrease (relative…

A: Since the price of the stock has been increased hence we will calculate the percentage…

Q: Your stock's returns for the past four years are as follows. t Return t1 19.79% t2 -0.58% t3…

A: The geometric average return is the average of the product of multiple numbers. The terms "compound…

Q: If the return on stock A in year 1 was 11 %, in year 2 was 19 %, in year 3 was 4 % and in year 4 was…

A: Financial management consists of directing, planning, organizing and controlling of financial…

Q: Use the following data to construct a stock bar chart for t 5-day period. Day Оpen Close High Low…

A: Here Stock Bar Chart can be prepared by using these data by using Excel. This chart is also known as…

Q: A stock has had the following year-end prices and dividends: Year Price Dividend 1 $ 64.23271.10…

A: Here are the arithmetic and geometric returns for the stock:YearArithmetic Return…

Q: A stock has had the following year-end prices and dividends: Year Price Dividend $ 1 43.27 23456 2…

A: Returns refer to the income earned by the investor through an investment in a particular holding…

Q: PREFERRED STOCK RATE OF RETURN What will be the nominal rate of return on a per- petual preferred…

A: Nominal rate of return = Dividend / Current market price Where, Dividend = Par Value * Dividend Rate…

Q: Given the following information concerning three stocks, Stock Price Shares Outstanding A $10…

A: We are given the following data -Stock PriceShares OutstandingA$101,000,000 B$143,000,000…

Q: GSM Inc. STOCK RETURN YEAR PRICE Jan-2021 P57.70 Feb-2021 P52.90 Mar-2021 P50.95 Apr-2021 P58.25…

A: Here, Total Return =? Average Return =? Standard Deviation =?

Q: Question 1 Consider the three stocks in the following table. P, represents price at time t, and Q,…

A: The rate of return refers to the minimum return earned by the investor while investing in the stocks…

Q: Suppose that the index model for stocks A and B is estimated from excess returns with the following…

A: Standard deviation of stock = wherei is stock is beta of stock i is standard deviation of market

Q: A stock has had returns of -5.32 percent, -7.58 percent, 4.68 percent, 7.7 percent, 8.98 percent,…

A: The below expression can be used to calculate geometric average return:

Q: You have the following price for a stock for several recent years. Assume that the stock F year…

A: Here, F year Begining of year price # of shares bought or sold 2005…

Q: Assume the following information concerning two stocks that make up an index. What is the…

A: Beginning index value=(46+76)/2=61

Q: answer must be correct or i will give down vote

Q: A stock has had the following year-end prices and dividends: Year Price Dividend $ 1 43.45 23456…

A: The arithmetic return is the most basic form of average: add the numbers together and divide them by…

Q: A stock has had the following year-end prices and dividends: Year 1 Price $64.68 2 3 71.55 77.35…

A: Calculation of arithmetic and geometric mean:Excel working with formula:

Q: Assume the following information concerning two stocks that make up an index. What is the…

A: Step 1: FormulaCurrent Total Market Value of Index StocksDivided by: Base year total market value of…

Q: A stock has had returns of 25 percent, 12 percent, 6 percent, –17 percent, -6 percent, and 22…

A: Arithmetic Return: It is the total return of the stock that is divided by total number of years. It…

Q: You are given the following information regarding prices for a sample of stocks. Stock B: Stock A B…

A: Here,

Q: A stock has had returns of 21 percent, 13 percent, 8 percent, -11 percent, -3 percent, and 17…

A: The return on stock refers to the profit that the stock provides to the investor for their…

Q: Use the Black-Scholes formula for the following stock: Time to expiration Standard deviation…

A: Stock price$44.00Strike price$44.00Time (t) 6 months (0.5)Risk-free rate (Rf)2.0%Standard…

Q: Using the data in the following table,, estimate the: a. Average return and volatility for each…

A: The standard deviation is a statistical indicator of market volatility, which gauges how far prices…

Q: Suppose a stock has generated the following annual returns: 13.6%, -12.1% and 7.6%. What was its…

A: Annual returns are as follows13.6%-12.1%7.6%

Q: Using the data in the following table, a. Average return and volatility for each stock. b.…

A: YearsStock AStock B2010-13%20%201120%12%20128%9%2013-1%-9%20144%-9%201511%27%Required:Average return…

Q: Using the data in the following table, estimate the average return and volatility for each stock.…

A: Step 1: Calculate the average return for each stock. For the average return, we must add all of the…

Q: A stock has had the following year-end prices and dividends: Year Price $65.03 123456 71.90 77.70…

A: Here,

Q: A stock has had the following year-end prices and dividends: Year 6723456 1 Price $ 65.08 Dividend…

A: The arithmetic average return is the simple average of all returns. The geometric rate of return is…

Q: Suppose a stock has generated the following annual returns: 11.4%, -7.9% and 5.4%. What was its…

A: Here,Annual Return are as follows:11.4%-7.9%5.4%

Q: Consider the following information on the stock market in a small economy. Shares Company…

A: Step 1: Step 2: Step 3: Step 4:

Q: . Use the one-period valuation model P = E/(1 + k) + P1/(1 + k) to price the following stocks…

A: Variables in the question: Earnings (E = $)Required return (k=%)Expected Price Next…

Q: What would be the expected price of UPS stock on this date, if estimated using the method of…

A: Earnings per share is the return for every share held by the shareholders. It is calculated by…

Q: A stock has had the following year-end prices and dividends: Year Price Dividend 1 $ 64.78 — 2…

A: Year Price Dividend 1 $ 64.78 2 $ 71.65 $ 0.69 3 $ 77.45 $ 0.74 4 $ 63.72…

Q: Arithmetic average return Geometric average return % olo olo %

A: Return 1 = r1 = 39.50%/100 = 0.3950 in decimalReturn 2 = r2 = 23.50%/100 = 0.2350 in decimalReturn 3…

Q: Consider the three stocks in the following table. Pt represents price at time t, and ot represents…

A: Price-weighted index refers to the index in the stock market which is used for weighting the…

Q: Directions: Compute the total returns, the average of returns, and the standard deviation of the…

A: Data given: ERGH Inc., Year Stock Price (P) Jan-21 0.088 Feb-21 0.090 Mar-21 0.097…

Q: Please correct answer and don't use hand rating

A: The problem involves arithmetic average and geometric average. Investment professionals often use…

Q: Assume the following information concerning two stocks that make up an index. What is the…

A: Part 2: ExplanationStep 1: Calculate the beginning market value of each stock.Kirk, Incorporated:…

Q: A stock has had the following year-end prices and dividends: Year Price Dividend 1 $…

A: Solution Arithmetic Average Return = 9.57% Geometric Average Return = 8.41% Explanation:Step 1:Year…

Q: You are given the following information regarding prices for a sample of stocks. Stock A B с Number…

A: Here,

Q: ABC stock price and dividend history are as follows. Fill in the returns (to 4 decimal places).…

A: Stock price history and dividend history of a stock has been provided. We have to find all kinds of…

Q: Calculate the upper bound to the 95th confidence interval given the following price and dividend…

A: Price Dividend Dividend Yield$ 64.65 $1.72…

Q: A stock has had the following year-end prices and dividends: Year 0 1 234 LO 5 Price $ 32.5 34.68…

A: Arithmetic is the simplest form of calculating the average rate of return from the series of…

Q: A stock has had the following year-end prices and dividends: Price $ 64.23 71.10 Year 123456 2 76.90…

A: Arithmetic Average return can be found by using the following formulaGeometric Average return can be…

Q: None

Question

1. A stock has had the following year-end prices and dividends:
Dividend ($)
Year
1
2
3
4
5
6
Price ($)
93.75
94.42
95.5
93.24
94.65
97.9
1.38
1.36
1.72
1.76
1.95
What is the geometric average return for the stock? Answer as a percentage to two decimals (if
you get -0.0435, you should answer -4.35).

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Calculation of geometric average return

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

An analyst gathered the following information for a stock and market parameters: stock beta = 1.42; expected return on the Market = 11.41%; expected return on T-bills = 2.12%; current stock Price = $9.64; expected stock price in one year = $12.81; expected dividend payment next year = $1.54. Calculate the required return for this stock. Please share your answer as a percentage rounded to 2 decimal places.
How do you calcuate the bechmark and historical return for the stock ARKK when the last price listed is $123.40 and the current value is $26,531.00.
A stock has had the following year-end prices and dividends: Year 1 Price Dividend $ 43.41 2 48.39 $0.66 3 57.31 0.69 4 45.39 0.80 5 52.31 0.85 6 61.39 0.93 What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Round the final answers to 2 decimal places.)
A stock has had returns of -7.77 percent, -4.59 percent, 5.87 percent, 9.98 percent, 8.7 percent, and 11.27 percent over the last six years. What is the geometric average return for the stock? Answer as a percentage to two decimals (if you get -0.0435, you should answer -4.35).
The index model has been estimated from the excess returns for stock A with the following results: = RA 12.00% +1.55RM+ eA °M = 24.00% σ(eд) = 18.50% What is the standard deviation of the return for stock A? (Round your answer to 2 decimal places.) Standard deviation %
Consider a market value-weighted index consisting of 3 stocks: A, B, and C. The stocks' prices at time 0 (p0) and time 1 (p1) are given below, along with the number of shares outstanding. Calculate the index levels at time 0. Round your answer to 4 decimal places. For example, if your answer is 3.205%, then please write down 0.0321. stock p0 p1 outstanding shares 43 45 200 69 50 500 11 12 600 A B C
A stock had the following year-end prices and dividends. What is the geometric average annual return on this stock Time Price Dividend 0 $23.19 ? 1 $24.90 $0.23 2 $23.18 $0.24 3 $24.86 $0.25
Use the information in the following stock quote to answer the question: As of February 1, 2XX1 Name Symbol Open High Low Close Net Chg Div Yield PE Target TGT 87.01 87.32 86.75 87.05 -0.32 2.56 2.93 16.76 What was Target’s earnings per share over the last year? (Round your answer to 2 decimal places. (e.g., 32.16))
How can I calculate geometric average in Excel?
A stock has had the following year-end prices and dividends: Year 1 2355N 4 6 Price $ 64.63 71.50 77.30 63.57 73.71 82.75 Dividend Arithmetic average return Geometric average return $.66 .71 .77 .86 .93 What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. % %
Use the portion of the stock table shown below to answer the questions that follow. Round dollar amounts to the nearest cent, if necessary. YTD %CHG 52- HI Week LO STOCK DIV YLD % VOL 100s CLOSE NET CHG 2.8 37.43 21.10 A1 0.99 3.7 789 27.02 –0.1 2.4 48.30 30.78 B1 ... 1303 41.68 0.4 If you purchased 400 shares of B1 stock at $45.03, what would the loss be if the shares were sold at the closing price indicated in the table.
Suppose a stock had an initial price of $84 per share, paid a dividend of $1.50 per share during the year, and had an ending share price of $71.50. a. Compute the percentage total return. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the dividend yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What was the capital gains yield? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS