Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Use the following information to answer questions 4 - 9.
ABC stock price and dividend history are as follows. Fill in the returns (to 4 decimal places).
Price At Dividend
Paid at
Month End
Month Month
End
Dec $54.00
Jan $53.30 none
Feb $55.66 none
The averages Arith=_ #8
Discrete
Return
#4
%
#6 %
Continuous
Return
#5
#7
%
%
% Geom= 1.5254%
Cont=
#9
%
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Transcribed Image Text:Use the following information to answer questions 4 - 9. ABC stock price and dividend history are as follows. Fill in the returns (to 4 decimal places). Price At Dividend Paid at Month End Month Month End Dec $54.00 Jan $53.30 none Feb $55.66 none The averages Arith=_ #8 Discrete Return #4 % #6 % Continuous Return #5 #7 % % % Geom= 1.5254% Cont= #9 %
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Number 4 is a decrete return. Number 5 is a Continuous return.  

 

Discreet return (#4) =P1P0−1 =53.3054.00−1=−1.2963%=P1P0-1 =53.3054.00-1=-1.2963%

Discreet return (#5) =P2P1−1 =55.6653.30−1=4.4278%

Here is what is listed.

Was this supposed to be #4 & #6?

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Number 4 is a decrete return. Number 5 is a Continuous return.  

 

Discreet return (#4) =P1P0−1 =53.3054.00−1=−1.2963%=P1P0-1 =53.3054.00-1=-1.2963%

Discreet return (#5) =P2P1−1 =55.6653.30−1=4.4278%

Here is what is listed.

Was this supposed to be #4 & #6?

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