The returns on a stock for the last 6 years have been -25%, 28%, 16%, -30%, 31%,
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Question:
The returns on a stock for the last 6 years have been -25%, 28%, 16%, -30%, 31%, and 4%.
Assuming that you purchased the stock for $200.00 six years ago and that all returns have come in the form of either capital gains or losses (i.e., there have been no dividends)
What is the price of the stock today?
Compute the average (arithmetic) return.
Compute the geometric average return.
Related Book For
Quantitative Investment Analysis
ISBN: 978-1119104223
3rd edition
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
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