Question

In: Finance

Calculate the historical average [ arithmetic] return:Year Closing Stock Price2009 28.532010 39.672011...

Calculate the historical average [ arithmetic] return:

Year Closing Stock Price

2009 28.53

2010 39.67

2011 35.52

2012 62.40

2013 51.00

2014 38.96

2015 40.23

2016 44.11

2017 56.68

2018 51.07

2019 38.02

Submit your answer as a decimal.

Solutions

Expert Solution

Ret = [ Year end Price / Year begining Price ] - 1

Avg Ret = Sum [ Returns ] / No. of Years of returns.

Year Begin Price End Price End / Begin [ End Price / Begin Price ] - 1
2010 $   28.53 $   39.67     1.3905 39.05%
2011 $   39.67 $   35.52     0.8954 -10.46%
2012 $   35.52 $   62.40     1.7568 75.68%
2013 $   62.40 $   51.00     0.8173 -18.27%
2014 $   51.00 $   38.96     0.7639 -23.61%
2015 $   38.96 $   40.23     1.0326 3.26%
2016 $   40.23 $   44.11     1.0964 9.64%
2017 $   44.11 $   56.68     1.2850 28.50%
2018 $   56.68 $   51.07     0.9010 -9.90%
2019 $   51.07 $   38.02     0.7445 -25.55%
Sum [ Ret ] 68.33%
Avg Ret = Sum [ Ret ] / n 6.83%

jeff jeffy answered 2 years ago
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