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Homework answers / question archive / Arithmetic and Geometric Returns A stock has had the following year-end prices and dividends Year Price Dividend 1 64

Arithmetic and Geometric Returns A stock has had the following year-end prices and dividends Year Price Dividend 1 64

Finance

Arithmetic and Geometric Returns A stock has had the following year-end prices and dividends

Year Price Dividend

1 64.12 -

2 68.13 1.15 
3 61.23 1.25 
4 74.27 1.36 
5 77.38 1.47 
6 86.19 1.60

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Arithmetic average return = 8.58%

Geometric return = 8.07%