Presented below are the beginning-of-year common share price (P_t-1), the end-of-year common share price (P_t), and the annual dividend (D_t) for three competitors—General Electric, Philipps Electcrtornoicnsi cs NV NV, and Siemens AG.

Calculate the annual return for each of the three individual securities. Which security provided the greatest return over the one-year period? What other information would you need to assess the return/risk trade-off on each of these individual securities?

Transcribed Image Text:

Pt-1 P D General Electric Co..... Philips Electronics NV $32.01- $34.50 $0.86 72.52 72.90 1.28 Siemens AG..... 27.20 25.36 0.52