Question: 15. Arithmetic and Geometric Returns [LO1] A stock has had returns of 9 percent, 21 percent, 32 percent, -18 percent, 27 percent, and -12 percent
15. Arithmetic and Geometric Returns [LO1] A stock has had returns of 9 percent, 21 percent, 32 percent, -18 percent, 27 percent, and -12 percent over the last six ears. What are the arithmetic and geometric returns for the stock? Arithmetic and Geometric Returns [LO1] A stock has had the following year- end prices and dividends: Year Price $51.50 59.32 64.13 57.86 65.19 74.86 Dividend 2 3 4 $.65 .70 86 .95 What are the arithmetic and geometric returns for the stock? 17. Using Return Distributions [LO3] Suppose the returns on long-term corporate bonds are normally distributed. Based on the historical record, what is the approxi- mate probability that your return on these bonds will be less than 2.1 percent in a u expect to see 95 percent of the time? What range would you expect to see 99 percent of the time? Using Return Distributions [LO3] Assuming that the returns from holding 18
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