Problem 12-16 Arithmetic and Geometric Returns [LO1] A stock has had the following year-end prices and dividends: Year Price Dividend $ 1 43.27 2 48.25 $.45 3 57.17 48 4 45.25 .60 5 52.17 .65 6 61.25 .73 What are the arithmetic and geometric average returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Arithmetic average return Geometric average return 9.56 % %

Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter8: Risk And Rates Of Return
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Problem 12-16 Arithmetic and Geometric Returns [LO1]
A stock has had the following year-end prices and dividends:
Year Price Dividend
$
1
43.27
23456
2
48.25
$.45
3
57.17
.48
4
45.25
.60
5 52.17
.65
.73
6 61.25
What are the arithmetic and geometric average returns for the stock? (Do not round
intermediate calculations and enter your answers as a percent rounded to 2 decimal
places, e.g., 32.16.)
Arithmetic average return
9.56%
Geometric average return
%
Transcribed Image Text:Problem 12-16 Arithmetic and Geometric Returns [LO1] A stock has had the following year-end prices and dividends: Year Price Dividend $ 1 43.27 23456 2 48.25 $.45 3 57.17 .48 4 45.25 .60 5 52.17 .65 .73 6 61.25 What are the arithmetic and geometric average returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Arithmetic average return 9.56% Geometric average return %
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