Question

# Given the following share price history, what is the arithmetic average return per share? Year Share...

Given the following share price history, what is the arithmetic average return per share?

 Year Share price 1 \$20 2 \$22 3 \$24 4 \$26 5 \$28

Select one:

a. 3.24%

b. 4.05%

c. 5.36%

d. 8.78%

e. 10.75%

From the given information, we can calculate the returns using excel as:

Excel formulas used:

The formula to calculate arithmetic average is:
=(Sum of all observations)/(Number of observations)
The returns as calculated from the share prices are 10.00%, 9.09%, 8.33% and 7.69%.
So, the number of observations =4
Arithmetic average return=(10.00% + 9.09% + 8.33% + 7.69%)/4
=(10.00% + 9.09% + 8.33% + 7.69%)/4
=35.11%/4
=8.78%

#### Earn Coins

Coins can be redeemed for fabulous gifts.

##### Need Online Homework Help?

Most questions answered within 1 hours.

##### Active Questions
• Computer equipment was acquired at the beginning of the year at a cost of \$51,500 that...
• For flow-through entities with individual owners, how many times is flow-through entity income taxed, who pays...
• Once a quarter, every six months, or annually, each salesperson should estimate the buying potential of...
• A city has 12 districts. An election is coming up for the city metro council (1...
• Insert the correct predecessor function using Microsoft Project for the following question: "Work may not start...
• Describe adolescent egocentrism. How does the “imaginary audience” and “the personal fable” influence the adolescent’s self-esteem?...