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 ?%
Year | Stock Price | Dividend | Aritmetic Average Return | Geometric Average Return |
0 | $ 43.29 | $ - | ||
1 | $ 48.27 | $ 0.48 | 12.61% | 1.13 |
2 | $ 57.19 | $ 0.51 | 19.54% | 1.20 |
3 | $ 45.27 | $ 0.60 | -19.79% | 0.80 |
4 | $ 52.19 | $ 0.65 | 16.72% | 1.17 |
5 | $ 61.27 | $ 0.73 | 18.80% | 1.19 |
9.57% | 8.41% |
Arithmetic Average Return = 9.57%
Geometric Average Return = 8.41%
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