1. Using the data in the table to the right, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid.

Date Price Dividend 1/2/03 $32.24 - 2/5/03 $30.91 $0.19 5/14/03 $30.98 $0.18 8/13/03 $32.83 $0.17 11/12/03 $39.42 $0.18 1/2/04 $40.14 -

What is the return for the entire period? (round to two decimal places)

2. Ten annual returns are listed in the following table:

19.6%

16.8%

18.2%

49.6%

43.7%

1.6%

16.2%

46.1%

44.7%

3.5%

a. What is the arithmetic average return over the 10-year period?

b. What is the geometric average return over the 10-year period?

c. If you invested $100 at the beginning, how much would you have at the end?