Question: 1. Calculate the rates of return (holding period returns) for the following stocks: Stock Beginning price: P 0 Ending price: P 1 Dividend payment: D

1. Calculate the rates of return (holding period returns) for the following stocks:  

Stock Beginning price: P 0 Ending price: P 1 Dividend payment: D 1
A 21.38 16.06 2.6
B 108.74 118.92 5.25
C 4.25 5.58 0.19

Part 1

What was the rate of return for stock A?

Part 2

What was the rate of return for stock B?

Part 3

What was the rate of return for stock C?

2. You bought Samsung stock for $45 on April 1. The stock paid a dividend of $3 on July 1, and had a price of $53. It is now Oct. 1, and the stock price is $60.

Part 1

What was the arithmetic average quarterly return?

Part 2

What was the geometric average return per quarter?

3. You've recorded the following prices and dividend payments for a stock:

Month Stock price Dividend
1 43.28
2 43.44 0.65
3 41.86
4 44.15
5 44.34 0.65

Part 1

What was the return in month 5?

Part 2

What was the arithmetic average monthly return?

Part 3

What was the geometric average return per month

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