Calculate the annual holding period returns for security

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Reference no: EM131878625

Consider a security whose value, at the end of each year, is given in the following table: Year Value of the Security 0 $100.00 1 $102.50 2 $103.72 3 $101.34 4 $102.81 5 $103.95 Note that the year 0 value of the security is the initial value.

(a) Calculate the annual holding period returns for the security.

(b) Calculate the arithmetic average annual rate of return and the geometric average annual rate of return for the security.

Reference no: EM131878625

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