In: Finance
The following stock prices pertain to Tesla (TSLA). Calculate the arithmetic and geometric returns from 2010 to 2019. Complete chart to help with problem .
2010 |
$ 4.82 |
|
2011 |
$ 5.81 |
|
2012 |
$ 7.51 |
|
2013 |
$ 36.28 |
|
2014 |
$ 40.72 |
|
2015 |
$ 38.24 |
|
2016 |
$ 50.38 |
|
2017 |
$ 70.86 |
|
2018 |
$ 61.40 |
|
2019 |
$130.11 |
A. Calculate the arithmetic average annual return for Tesla from
2010 through 2019.
B. Calculate the geometric average annual return for Tesla from 2010 through 2019.
Calculations-
Holding period return = (Price at year end -Price at year beginning)/Price at year beginning
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