A stock had the following year-end prices and dividends:Year0123Multiple ChoiceOPrice$ 60.5572.4662.9873.50What was the arithmetic average return for the stock?OO12.61%10.09%Dividend9.02%$ 1.291.631.64

Return= (Dividend + Closing Price - Opening Price )/ Opening Price

Answered: A stock had the following year-end…

A stock had the following year-end prices and dividends: Year 0 1 -2 23 3 Price $ 60.55 72.46 62.98 73.50 Dividend $1.29 1.63 1.64 What was the arithmetic average return for the stock?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

A stock had the following year-end prices and dividends:
Year
0
1
23
Multiple Choice
O
Price
$ 60.55
72.46
62.98
73.50
What was the arithmetic average return for the stock?
O
O
12.61%
10.09%
Dividend
9.02%
$ 1.29
1.63
1.64

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