Matt bought 200 shares for $464. The price of the shares in the following 4 years...

 

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Matt bought 200 shares for $464. The price of the shares in the following 4 years were as follows: $440; $490; $480; and $520 a. What were the annual rates of return? b. What is the arithmetic average return? c. What is the geometric average return? d. Demonstrate that the geometric average is more accurate. Matt bought 200 shares for $464. The price of the shares in the following 4 years were as follows: $440; $490; $480; and $520 a. What were the annual rates of return? b. What is the arithmetic average return? c. What is the geometric average return? d. Demonstrate that the geometric average is more accurate.

Answer rating: 100% (QA)

a To calculate the annual rates of return you can use the formula Annual Rate of Return Ending Value ... View the full answer