A stock has had the following year-end prices and dividends:Year1Price$ 64.43Dividend271.30$ .62377.10.67463.37.73573.31.82680.75.89What are the arithmetic and geometric returns for the stock?

Geometric average return is used to calculate the average return rate per period applicable to an…

A stock has had the following year-end prices and dividends: Year 123456 Price $ 64.43 Dividend 71.30 $ .62 77.10 .67 63.37 .73 73.31 .82 80.75 .89 What are the arithmetic and geometric returns for the stock?

A stock has had the following year-end prices and dividends: Year 123456 Price $ 64.43 Dividend 71.30 $ .62 77.10 .67 63.37 .73 73.31 .82 80.75 .89 What are the arithmetic and geometric returns for the stock?

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

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Question

A stock has had the following year-end prices and dividends:
Year
1
Price
$ 64.43
Dividend
2
71.30
$ .62
3
77.10
.67
4
63.37
.73
5
73.31
.82
6
80.75
.89
What are the arithmetic and geometric returns for the stock?

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