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XYZ stock price and dividend history are as follows: Year Beginning-of-year Price Dividend paid at Year-End $100 $10 $90 $10 2012 $95 $5 2013


 

XYZ stock price and dividend history are as follows: Year Beginning-of-year Price Dividend paid at Year-End $100 $10 $90 $10 2012 $95 $5 2013 $105 What is the arithmetic average rate of return for the period from the beginning of 2010 to the end of 2012? Note that the end of 2012 is simply the beginning of 2013. (So the beginning price for the first return is 100, the ending price is 90, and the dividend is 10 dollars paid at the end of the 2010 period is 10). 2010 2011 Your answer should be in percentages and accurate to the hundredths. (So 10.312% would be entered as 10.31). Question 2 1 pts Use the same information as given in Question#1 and compute the cumulative return from the beginning of 2010 to the beginning of 2013 (three years). Your answer should be in percentages and accurate to the hundredths.

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