Question: the second picture is a example for you The folowing table containe prices and dlvidends for a stock. All prices are after the dividend has

 the second picture is a example for you The folowing table
containe prices and dlvidends for a stock. All prices are after the the second picture is a example for you

The folowing table containe prices and dlvidends for a stock. All prices are after the dividend has been pald. If you bought the atock cn January t ard sold it on Decerkber 31, what is your realized retum? Hint Make sure to round all intermediate calculations to at least five decimal places. (Cick on the folowing icon mo in order to copy is contents into a spreadaheet) Your realized retum is \%. (Round to one decimal place.) First, eomoute each periods retem uting the foloming formula: P1+1=Pt(Pt+1Pl)+DWt+1 Therelore R1=50.65(510.85$9.85)+50.24=0.125888R2=510.85(510.35510.85)+50.24=0.023963R3=$10.35($10.95$10.35)+$0.24=0.081159R4=$10.95($10.85$10.95)+50.24=0.0127.5 Thon, compule the ancial realzed retum using the following formula: Rannusl=((1+R1)(1+R2)(1+R3)(1+R4))1 Therefore, Rannual=(1+0.125888)(10.023953)(1+0.081159)(1+0.012785))1=0.2033 Your realzed meturn is 0.2033=20.3%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!