Question: Problem 1-18 Arithmetic and Geometric Returns (L01, CFA1) A stock has returns of -5 percent, 11 percent, 8 percent, 10 percent, and -6 percent. What


Problem 1-18 Arithmetic and Geometric Returns (L01, CFA1) A stock has returns of -5 percent, 11 percent, 8 percent, 10 percent, and -6 percent. What are the arithmetic and geometric returns? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Arithmetic return Geometric return Problem 1-1 Calculating Returns (L01, CFA1) Suppose you bought 300 shares of stock at an initial price of $54 per share. The stock paid a dividend of $0.30 per share during the following year, and the share price at the end of the year was $56. Compute your total dollar return on this investment. Total dollar return Problem 1-20 Arithmetic versus Geometric Returns (LO1, CFA1) You are given the returns for the following three stocks: Year 1 2 3 4 5 Stock A 9% 9 9 9 9 Stock B 7% 13 7 6 12 Stock - 20% 31 18 12 4 Calculate the arithmetic return, geometric return, and standard deviation for each stock. (Do not round into Enter your answers as a percent rounded to 2 decimal places.) Stock A Stock B Stock C Arithmetic return Standard deviation Geometric return % % % % % % % %
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