One year ago. you purchased 500 shares of Best Wings. Inc. stock at a price of $
ID: 2644892 • Letter: O
Question
One year ago. you purchased 500 shares of Best Wings. Inc. stock at a price of $9.75 a share. The company pays an annual dividend of $0.10 per share. Today, you sold all of your shares for $15.60 a share. What is your total percentage return on this investment? A stock has had returns of 6 percent, 24 percent, 16 percent, -12 percent, 31 percent, and -6 percent over the last six years. What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations and round your final answers to 2 decimal places, (e.g., 32.16)) Suppose you bought a 7 percent coupon bond one year ago for $810. The bond sells for $875 today. Requirement 1: Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? Requirement 2: What was your total nominal rate of return on this investment over the past year? Requirement 3: If the inflation rate last year was 4 percent, what was your total real rate of return on this investment? (Do not round intermediate calculations.)Explanation / Answer
1.))))
The arithmetic average return is the sum of the known returns divided by the number of returns, so:
Arithmetic average return = (0.06 + 0.24 + 0.16
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.