An analyst has looked up prices for Coca-Cola stock over the past 5 months. He w

Question

An analyst has looked up prices for Coca-Cola stock over the past 5 months. He wants to determine the recent performance of the stock before he invests.

Coca-Cola Adjusted Prices (Prices include dividends….)

What is the average return on this stock over the past 5 months?

Answer Format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

Date Price 7/1/2013 $41.03 6/3/2013 $40.12 5/1/2013 $39.89 4/1/2013 $42.08 3/1/2013 $40.22

Explanation / Answer

Find the returns in each month

Return = (Ending price + dividend - Initial price)/Initial price

Average return = (4.6246% + (-5.2044%) + 0.5766% + 2.2682%) / 4 = 0.57%

Date Rate of return Return 3/1 - 4/1 (42.08-40.22)/40.22 4.6246% 4/1 - 5/1 (39.89-42.08)/42.08 -5.2044% 5/1 - 6/1 (40.12-39.89)/39.89 0.5766% 6/1 - 7/1 (41.03-40.12)/40.12 2.2682%

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.