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Compute the geometric average return

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Reference no: EM133049484

Question - The returns on a stock for the last 6 years have been -25%, 6%, -18%, 28%, 18%, and 33%.

a. Assuming that you purchased the stock for $42.35 six years ago and that all returns have come in the form of either capital gains or losses (i.e., there have been no dividends), what is the price of the stock today?

b. Compute the average (arithmetic) return.

c. Compute the geometric average return.

Reference no: EM133049484

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