Question

1. Using the data in the table to the​ right, calculate the return for investing in...

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​%

43.7​%

1.6​%

−16.2​%

46.1​%

44.7​%

−3.5​%

a. What is the arithmetic average return over the​ 10-year period?

b. What is the geometric average return over the​ 10-year period?

c. If you invested​ $100 at the​ beginning, how much would you have at the​ end?

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