What is the arithmetic average rate of return earned

Assignment Help Engineering Mathematics
Reference no: EM131542555

Question: 1. Caswell Enterprises had the following end-of-year stock prices over the last five years and paid no dividends.

Time        Caswell

1               $12

2                 9

3                 7

4                 6

5                 8

- Calculate the average rate of return for each year from the above information.

- What is the arithmetic average rate of return earned by investing in Caswell's stock over this period?

- What is the geometric average rate of return earned by investing in Caswell's stock over this period?

- Considering the beginning and ending stock prices for the five-year period are the same, which type of average rate of return best describes the annual rate of return earned over the period (arithmetic or geometric)?

- The annual rate of return at the end of year 3 is what percent?

2. Syntex is considering an investment in one of two stocks. Given the information that follows, which investment is better based on the risk (the standard deviation) and return? Given the information in the table, what percent is the rate of return for Stock B?

3. On December 5, 2007, the common stock of Google, Inc. (GOOG) was trading at $698.51. One year later, the shares sold for $301.99. Google has never paid a common stock dividend. What rate of return would you have earned on your investment had you purchased the shares on December 5, 2007? The rate of return you would have earned is what percent?

4. The common stock of Plaxo Enterprises had a market price of $9.45 on the day you purchased it just 1 year ago. During the past year, the stock paid a dividend of $1.43 and closed at a price of $11.66. What rate of return did you earn on your investment in Plaxo's stock? The rate of return you earned on Plaxo's stock is what percent?

The informatiuon related to above question is enclosed below:

Attachment:- Assignment.rar

Reference no: EM131542555

Questions Cloud

What is murrows view on the impacts of immigration : What is Murrows' view on the impacts of immigration in western states farm labor markets? Draw a graph depicting supply and demand for farm labor multiple farm.
Present value of a cash flow stream : Explain why the present value of a cash flow stream, and the asset associated therewith; fluctuate in value with the level of interest rates.
Identify an issue within the health industry : Identify an issue within the health industry or a health issue within a population or community
What is this book trying to acheive and how does it acheive : What is this book trying to acheive and how does it acheive it? - In what ways has this book caused you to shift your thinking
What is the arithmetic average rate of return earned : Caswell Enterprises had the following end-of-year stock prices over the last five years and paid no dividends.
What are the six major food groups : What are the six major food groups? What does each of these food groups do? What can you do to increase or decrease your intake of selected food groups
Important trends in business hardware : What important trends in business hardware are occurring? What relationship do you see happening between hardware changes and software?
Proposes a new initiative using the components : Proposes a new initiative using the components of ethical business communication - Select a topic for your assignment from the list of potential recommendations
Baldrige core values in reflective exercise : You are expected to refer to the Baldrige Core Values in this reflective exercise and to discuss how those Core Values.

Reviews

Write a Review

Engineering Mathematics Questions & Answers

  Prime number theorem

Dirichlet series

  Proof of bolzano-weierstrass to prove the intermediate value

Every convergent sequence contains either an increasing, or a decreasing subsequence.

  Antisymmetric relations

How many relations on A are both symmetric and antisymmetric?

  Distributed random variables

Daily Airlines fies from Amsterdam to London every day. The price of a ticket for this extremely popular flight route is $75. The aircraft has a passenger capacity of 150.

  Prepare a system of equations

How much money will Dave and Jane raise for charity

  Managing ashland multicomm services

This question is asking you to compare the likelihood of your getting 4 or more subscribers in a sample of 50 when the probability of a subscription has risen from 0.02 to 0.06.]  Talk about the comparison of probabilities in your explanation.

  Skew-symmetric matrices

Skew-symmetric matrices

  Type of taxes and rates in spokane wa

Describe the different type of taxes and their rates in Spokane WA.

  Stratified random sample

Suppose that in the four player game, the person who rolls the smallest number pays $5.00 to the person who rolls the largest number. Calculate each player's expected gain after one round.

  Find the probability density function

Find the probability density function.

  Develop a new linear programming for an aggregate production

Linear programming applied to Aggregate Production Planning of Flat Screen Monitor

  Discrete-time model for an economy

Discrete-time model for an economy

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd