Suppose you buy 300 shares of Applied Materials Corporation at the beginning of year 1 for $43.00 per share. Applied Materials Corporation pays no dividends. The stock price at the end of year 1 is $47.00, the price is $55.00 at the end of year 2, and the price is $63.00 at the end of year 3. The stock price declines to $60.00 at the end of year 4, and you sell your 300 shares. What is your geometric average return for the 4-year period? (Round your answer to 2 decimal places. Do not round intermediate calculations.)
Suppose you buy 300 shares of Applied Materials Corporation at the beginning of year 1 for $43.00 per share. Applied Materials Corporation pays no dividends. The stock price at the end of year 1 is $47.00, the price is $55.00 at the end of year 2, and the price is $63.00 at the end of year 3. The stock price declines to $60.00 at the end of year 4, and you sell your 300 shares. What is your geometric average return for the 4-year period? (Round your answer to 2 decimal places. Do not round intermediate calculations.)
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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Transcribed Image Text:Suppose you buy 300 shares of Applied Materials Corporation at the beginning of year 1 for $43.00 per share. Applied Materials
Corporation pays no dividends. The stock price at the end of year 1 is $47.00, the price is $55.00 at the end of year 2, and the price is
$63.00 at the end of year 3. The stock price declines to $60.00 at the end of year 4, and you sell your 300 shares.
What is your geometric average return for the 4-year period? (Round your answer to 2 decimal places. Do not round intermediate
calculations.)
Return
%
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