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In: Finance

What is the 4-year average annual return for the following stock? Price as of 1/1 Price...

What is the 4-year average annual return for the following stock?

Price as of 1/1 Price as of 12/31
2016 $10.00 $11.00
2019 $10.00 $11.00
2020 $12.00 $15.00
2021 $15.00 $10.00

Solutions

Expert Solution

Year Return / Price Return %
2016                      1.00                                 10.00 10.00%
2019                      1.00                                 10.00 10.00%
2020                      3.00                                 12.00 25.00%
2021                    (5.00)                                 15.00 -33.33%
Total 11.67%
/ Count 4
Average 2.92%

Four year average return is 2.92%


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