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The following stock prices pertain to Tesla (TSLA). Calculate the arithmetic and geometric returns from 2010...

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.

Solutions

Expert Solution

Calculations-

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

PLease upvote if the ans is helpful.In case of doubt,do comment.Thanks

jeff jeffy answered 2 years ago
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