A stock has had the following year-end prices and dividends: Year 0 1 234 LO 5 Price $ 32.5 34.68 35.68 34.18 36.52 39.63 Dividend $ 0.15 0.31 1.63 0.22 0.41 What are the arithmetic and geometric returns for the stock? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

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
icon
Related questions
Question
A stock has had the following year-end prices and dividends:
Year
0
1
~ 34
2
5
Arithmetic
returns
Geometric
Price
$ 32.5
returns
34.68
35.68
34.18
36.52
39.63
What are the arithmetic and geometric returns for the stock? (Round your answer to 2
decimal places. Omit the "%" sign in your response.)
Dividend
$ 0.15
0.31
1.63
0.22
%
0.41
Transcribed Image Text:A stock has had the following year-end prices and dividends: Year 0 1 ~ 34 2 5 Arithmetic returns Geometric Price $ 32.5 returns 34.68 35.68 34.18 36.52 39.63 What are the arithmetic and geometric returns for the stock? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Dividend $ 0.15 0.31 1.63 0.22 % 0.41
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Stock Market Analysis
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
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
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…
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