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 youThe 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%
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