Cindy in vested in a small stock whose price was $5.60. The following table shows the prices of the stock at the end of the first year, second year, and so on. Year Price ($) 1 7.71 2 7.07 3 14.41 4 21.71 5 14.71 Calculate the arithmetic mean rate of return and the geometric mean rate of return of the stock.
Cindy in vested in a small stock whose price was $5.60. The following table shows the prices of the stock at the end of the first year, second year, and so on. Year Price ($) 1 7.71 2 7.07 3 14.41 4 21.71 5 14.71 Calculate the arithmetic mean rate of return and the geometric mean rate of return of the stock.
Chapter5: The Cost Of Money (interest Rates)
Section: Chapter Questions
Problem 6PROB
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4.12 Cindy in vested in a small stock whose price was $5.60. The following table shows the prices of the stock at the end of the first year, second year, and so on.
Year |
Price ($) |
1 |
7.71 |
2 |
7.07 |
3 |
14.41 |
4 |
21.71 |
5 |
14.71 |
Calculate the arithmetic mean
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