Question

In: Finance

A stock has had the following year-end prices and dividends:    Year Price Dividend 0 $...

A stock has had the following year-end prices and dividends:

  

Year Price Dividend
0 $ 24.75
1 26.93 $ 0.15
2 27.93 0.24
3 26.43 0.86
4 28.77 0.18
5 31.88 0.34

  

What are the arithmetic and geometric returns for the stock? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

  

  Arithmetic returns %
  Geometric returns %

Solutions

Expert Solution

calculations-

Holding period return = (Price at year end +dividend -Price at year beginning)/Price at year beginning

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