F301 PS5_11Spring

F301 PS5_11Spring - F301 Problem Set 5 Spring 2011 Write...

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F301 Problem Set 5 Spring 2011 Write your answers on a separate sheet of paper. You do not need to return this page. You must show your work in logical sequence in order to receive full credit. To show work, you may show mathematical formulas or calculator inputs. Each question is worth 3 points. 33 points possible. Shown below are the year-end closing stock prices for shares of Walt Disney Co. for the last six years. The rate of return per year is the percent change from one year to the next. Use this information to answer Questions 1 - 4. Note that these are prices , not returns. You must first compute the returns. Year-end 2005 2006 2007 2008 2009 2010 $23.91 $33.52 $28.75 $20.22 $29.23 $38.88 1. Compute the arithmetic average return from year-end 2005 to year-end 2010. Show your answer as a percent with two decimal places. 2. Compute the geometric average return from year-end 2005 to year-end 2010. Show your answer as a percent with two decimal places. 3.
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This note was uploaded on 03/15/2012 for the course BUS-F 301 taught by Professor T during the Spring '12 term at IUPUI.

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F301 PS5_11Spring - F301 Problem Set 5 Spring 2011 Write...

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