Question: below is both question and answer. please explain where they get those numbers from the answer. ex. -0.0897 etc View an example All parts showing

View an example All parts showing Using the data in the following table, calculate the return for investing in Boeing stock (BA) from January 2,2003 , to January 2,2004 , and also from January 2, 2008, to January 2, 2009, assuming all dividends are reinvested in the stock immediately. Follow these steps to calculate the return for the period: - Calculate the return for each subperiod. - Calculate the total return for the period using the following formula: R=(1+R1)(1+R2)(1+R3)(1+R4)(1+R5)1 where R1 is the return for the first period, and R2,R3,R4, and R5 represent the returns for the remaining periods. The following shows how to calculate the return for each subperiod: R1=P1P2+D11 The following shows how to calculate the return for each subperiod: R1=P1P2+D11 Return from January 2, 2003, to January 2, 2004 is: R=(1+0.0897)(1+0.0329)(1+0.1038)(1+0.2119)(1+0.0747)1=0.2655=26.55% Return from January 2, 2008, to January 2, 2009 is: R=(10.0728)(1+0.0631)(10.2218)(10.2362)(10.0868)1=0.4650=46.50%
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
