Question

Use the following data for the next 2 questions: You purchased a stock on 1/1/20X1 for $100. The following table gives the price of the stock and the dividend paid for several years. Date Price Dividend 1/1/20X2 110 2 1/1/20X3 105 3 1/1/20X4 130 4 11.

Date |
Price |
Dividend |

1/1/20X2 |
110 |
2 |

1/1/20X3 |
105 |
3 |

1/1/20X4 |
130 |
4 |

What is the arithmetic average annual return over the three-year period for the stock?

What is the geometric average annual return over the three-year period for the stock?

Answer #1

* Arithmetic Average = (Ending price + Dividend - Beginning Price) / Beginning price

* geometric average = ((1 + year 1 return) * (1 + year 2 return) *(1 + year 3 return))^(1/3) - 1

The common stock of the Brangus Cattle Company had the
following end-of-year stock prices over the last five years and
paid no cash dividends:
Time Brangus Cattle Company
1 $17
2 $12
3 $13
4 $21
5 $26
a. The annual rate of return at the end of year 2 is ___%
b. What is the arithmetic average rate of return earned by
investing in Brangus Cattle Company's stock over this period?
c. What is the geometric average rate of...

Marsh Inc. had the following? end-of-year stock prices over the
last five years and paid no cash? dividends:
Time Marsh
1 $8
2 $11
3 $17
4 $7
5 $8
a. Calculate the annual rate of return for each
year from the above information.
b. What is the arithmetic average rate of
return earned by investing in? Marsh's stock over this? period?
c. What is the geometric average rate of return
earned by investing in? Marsh's stock over this? period?...

On 1/1/20X1, Illini Company acquires 40% of Raven's capital
stock for $20,000. The investment gives Illini the ability to
exercise significant influence over Raven’s operations. Raven's net
income for the year 20X1 is $10,000. On 12/31/20X1, the investment
has a fair value of $18,000. During 20X1, Raven declares and pays a
dividend of $5,000 to all shareholders. On 5/1/20X2, Illini sells
the securities for $20,000.
Project 1.3 Part 3 Balance Sheet
Date
Account Name
Debit
Credit
1/1/20X1
Investment-equity method
[A]...

1. Using the data in the table to the right,
calculate the return for investing in the stock from January 1 to
December 31. Prices are after the dividend has been paid.
Date Price Dividend
1/2/03 $32.24 -
2/5/03 $30.91 $0.19
5/14/03 $30.98 $0.18
8/13/03 $32.83 $0.17
11/12/03 $39.42 $0.18
1/2/04 $40.14 -
What is the return for the entire period? (round to two decimal
places)
2. Ten annual returns are listed in the
following table:
−19.6%
16.8%
18.2%
−49.6%...

1. Calculate the rates of return (holding period returns) for
the following stocks:
Stock
Beginning price: P0
Ending price: P1
Dividend payment: D1
A
21.38
16.06
2.6
B
108.74
118.92
5.25
C
4.25
5.58
0.19
Part 1
What was the rate of return for stock A?
Part 2
What was the rate of return for stock B?
Part 3
What was the rate of return for stock C?
2. You bought Samsung stock for $45 on April 1. The stock...

A stock has had the following year-end prices and
dividends:
Year
Price
Dividend
1
$85.18
---
2
$92.35
$0.55
3
$90.49
$0.75
4
$100.05
$0.90
What were percentage rate of returns for Year 2, Year 3, and
Year 4?
What is the arithmetic average return for the stock?
What is the geometric average return for the stock?

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 ?%

3)
Two years ago, you paid $50 per share for JXZC Stock. One year ago,
the price was $47 per
share
and yesterday the price was $54 per share. The stock paid dividends
of $1.90 and
$2.00
per share in Year 1 and Year 2, respectively.
a) calculate the total dollar return
b) find the holding period yield
c) find the capital gain over your holding period
d) find the dividend yield over your holding period
e) find the arithmetic...

Q1) A stock earned annual returns of 5%, 10%, -7%, and 16% for
the last four years.
a) What is the arithmetic average return for the stock over the
last four years?
b) What is the standard deviation of the returns over the last
four years?
c) What is the geometric average return for the stock over the
last four years?
d) What is the holding period return for the stock over the last
four years?
e) What would have...

1. We have the following information for the XYZ stock:
Year Annual
Return
2014
10%
2015
-15%
2016
15%
2017 20%
a. Calculate the arithmetic average annual return.
b. Calculate the geometric average annual return.
c. Calculate the standard deviation of the returns.
d. If $1000 is invested in the stock at the start of 2014, how
much will it become by year-end 2017?
2.An investor invested $1000 in a mutual fund at the...

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