An investor purchased the share of Neptune Corp on 1 Jan 2017 and held the investment until 31 December 2021. Details of Neptune Corp’s share price and dividend payout during the period of investment are as follows:

Date	Share Price	Dividend
01 Jan 2017	8.50	-
31 Dec 2017	8.80	0.30
31 Dec 2018	9.15	0.35
31 Dec 2019	9.22	0.38
31 Dec 2020	8.87	0.22
31 Dec 2021	9.12	0.30

Compute:
(i) Arithmetic rate of return for 2017, 2018, 2019, 2020 and 2021 separately.
(ii) Geometric average rate of return for the entire period of investment from 2017 until 2021.
(iii) Logarithmic returns for the entire period of investment from 2017 until 2021.
(b) Discuss four differences between investing in stocks and investing in bonds.

Answer rating: 100% (QA)

i 2017 880 850 850 353 2018 915 880 880 417 2019 922 915 915 077 2020 887 922 922 374 2021 912 887 8... View the full answer