CNCT ACC CORPORATE FINANCE
12th Edition
ISBN: 9781264604081
Author: Ross
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 10, Problem 12QAP
Summary Introduction
Adequate information:
Return in 5 years is 12.79, 9.21, 14.68, 21.83 and -10.34 percent.
To calculate: The holding period
Introduction: Arithmetic average returns refers to the return that is determined by dividing the number of returns by the sum of all the returns. The real
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A stock had the following year-end prices and dividends: Year Price Dividend 0 $ 58.75 — 1 68.56 $ 1.14 2 61.78 1.33 3 70.20 1.49 What was the arithmetic average return for the stock?
A stock has had the following year-end prices and dividends:
Year
Price
Dividend
1
$ 64.78
—
2
71.65
$ .69
3
77.45
.74
4
63.72
.80
5
74.01
.89
6
84.25
.96
What are the arithmetic and geometric returns for the stock?
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
Chapter 10 Solutions
CNCT ACC CORPORATE FINANCE
Ch. 10 - Investment Selection Given that Madrigal...Ch. 10 - Investment Selection Given that Sears was down by...Ch. 10 - Risk and Return We have seen that over long...Ch. 10 - Prob. 4CQCh. 10 - Effects of Inflation Look at Table 10.1 and Figure...Ch. 10 - Risk Premiums Is it possible for the risk premium...Ch. 10 - Prob. 7CQCh. 10 - Returns Two years ago, the Lake Minerals and Small...Ch. 10 - Prob. 9CQCh. 10 - Historical Returns The historical asset class...
Ch. 10 - Prob. 1QAPCh. 10 - Calculating Yields In Problem 1, what was the...Ch. 10 - Calculating Returns Rework Problems 1 and 2...Ch. 10 - Prob. 4QAPCh. 10 - Prob. 5QAPCh. 10 - Prob. 6QAPCh. 10 - Prob. 7QAPCh. 10 - Prob. 8QAPCh. 10 - Prob. 9QAPCh. 10 - Calculating Real Returns and Risk Premiums In...Ch. 10 - Prob. 11QAPCh. 10 - Prob. 12QAPCh. 10 - Prob. 13QAPCh. 10 - Prob. 14QAPCh. 10 - Calculating Returns You bought a stock three...Ch. 10 - Prob. 16QAPCh. 10 - Prob. 17QAPCh. 10 - Prob. 18QAPCh. 10 - Prob. 19QAPCh. 10 - Prob. 20QAPCh. 10 - Prob. 21QAPCh. 10 - Prob. 22QAPCh. 10 - Prob. 23QAPCh. 10 - Using Return Distributions Suppose the returns on...Ch. 10 - Prob. 25QAPCh. 10 - Prob. 26QAPCh. 10 - Using Probability Distributions Suppose the...Ch. 10 - Prob. 28QAPCh. 10 - Prob. 1MCCh. 10 - Prob. 2MCCh. 10 - Assume you decide you should invest at least part...Ch. 10 - Prob. 4MCCh. 10 - Prob. 5MCCh. 10 - What portfolio allocation would you choose? Why?...
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
- What are the arithmetic and geometric (Answer in that order.) average returns for a stock with annual returns of 9.4 percent, 8.2 percent, -8.3 percent, 4.1 percent, and 9.5 percent?arrow_forwardCalculating Returns: Suppose a stock had an initial priceof $76 per share, paid a dividend of $1.95 per share duringthe year, and had an ending share price of $68. Compute thepercentage total return. What was the dividendyield? The capital gains yield?arrow_forward1. A stock has had the following year-end prices and dividends: Year Price ($) Dividend ($) 94.17 92.21 1.05 96.1 1.2 96.3 1.57 94.16 1.66 96.46 1.69 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).arrow_forward
- Suppose a stock has generated the following annual returns: 11.4%, -7.9% and 5.4%. What was its total return during that period? Answer in percent, rounded to two decimal places (e.g., 4.32% = 4.32).arrow_forwardWhat is the geometric return for this stock on these accounting question?arrow_forwardSuppose a stock had an initial price of $86 per share, paid a dividend of $1.70 per share during the year, and had an ending share price of $12.50. Compute the percentage total return. What was the dividend yield? What was the capital gains yield?arrow_forward
- A stock has had the following year-end prices and dividends: Year Price Dividend 0 $ 43.29 - 1 48.27 $ .48 2 57.19 .51 3 45.27 .60 4 52.19 .65 5 61.27 .73 What are the arithmetic and geometric average returns for the stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Arithmetic average return % Geometric average return %arrow_forwardA stock has had returns of −19.2 percent, 29.2 percent, 26.4 percent, −10.3 percent, 35 percent, and 27.2 percent over the last six years. What are the geometric returns for the stock? & is there an excel function for itarrow_forwardA stock has had the following year-end prices and dividends: Year Price Dividend 1 $43.33 2 48.31 $0.54 3 57.23 0.57 4 45.31 0.80 5 52.23 0.85 6 61.31 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.) Arithmetic return Geometric return % %arrow_forward
- A stock has had the following year-end prices and dividends: TIT Year Price Dividend $16.25 1 18.43 $ .15 2 19.43 .30 3 17.93 .33 4 20.27 .34 23.38 .40 What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Arithmetic return |% Geometric returnarrow_forwardA stock has had returns of −19 percent, 29 percent, 24 percent, −10.1 percent, 34.8 percent, and 27 percent over the last six years. What is the geometric return for the stock?arrow_forwardA stock had returns of 2 percent, 1.4 percent, -4.2 percent, 5.8 percent, -9.9 percent, and 17.8 percent over the past six years. What is the arithmetic average return for this time period? _____%arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Fundamentals of Financial Management, Concise Edi...FinanceISBN:9781305635937Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage Learning
Business/Professional Ethics Directors/Executives...AccountingISBN:9781337485913Author:BROOKSPublisher:Cengage
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
Fundamentals of Financial Management, Concise Edi...
Finance
ISBN:9781305635937
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Portfolio return, variance, standard deviation; Author: MyFinanceTeacher;https://www.youtube.com/watch?v=RWT0kx36vZE;License: Standard YouTube License, CC-BY