Calculating returns and risknbsp on january 2 2001 you

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Calculating returns and risk.  On January 2 2001, you purchased 500 shares of Loewen Group for $9.60 per share. The following information is available concerning the yearly dividend the company paid and the year-end share price for the eight years to 2008.

Date

Dividends paid during year

Stock price at year-end

December 31, 2001

$0.00

$10.65

December 31, 2002

$0.12

$15.23

December 31, 2003

$0.16

$12.25

December 31, 2004

$0.40

$9.25

December 31, 2005

$0.48

$14.50

December 31, 2006

$0.62

$21.75

December 31, 2007

$0.75

$30.35

December 31, 2008

$1.00

$38.00

a. Calculate your dollar and percentage return on the investment in Loewen for each year.

b. Calculate your dollar return on the investment.

c. Calculate your arithmetic and geometric mean returns for this period.  Why are the arithmetic and geometric means different?

d. Calculate the standard deviation of returns for this period.  Interpret the answer.

e. Calculate and interpret the coefficient of variation for your investment in Loewen over this period.

Reference no: EM13381282

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