SHOW YOUR WORK! NO WORK SHOW IS ZERO POINT EVEN IF THE FINAL ANSWER IS CORRECT!

QUESTION 4 RISK AND RETURN (25 POINTS)

Part a. Use the following table and answer the following questions: [10 points]

1. Fill the monthly stock return column and show work in the next column.

1. Find the arithmetic and geometric average monthly return for Apple between April 2021 and July 2021.

Date	Stock Price	Dividend	Return (%)	Show your work for return calculation
4/1/2021	131.46	0
5/1/2021	124.61	0.22
6/1/2021	136.96	0
7/1/2021	145.86	0
8/1/2021	151.83	0.22

The arithmetic average of monthly return in % ______________ (2 decimal points)

The geometric average of monthly return in % ______________ (2 decimal points)

Show which functions you use and values in those functions.

Part b. You have realized the following rates of return on an investment: [15 points]

	Year 1	Year 2	Year 3
Rate of Return	-7.00%	2.00%	8.00%

1. What is the cumulative rate of return over the three years of this investment? [10 points]

The cumulative rate of return over the three years is % _________(2 decimal points)

1. If you invested $100 at the beginning of Year 1, how much money would you end up with at the end of Year 3? [5 points]

The amount at the end of year 3 is $ ___________________