Compute the geometric average of the rates of return

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Reference no: EM13945315

1. You purchased 100 shares of ABC stock for $20 per share. One year later you received cash dividends of $1 per share and sold the stock for $22 per share. Your holding-period return was _______________.

A) 5%

B) 10%

C) 15%

D) 20%

2. Compute the geometric average of the following rates of return:

First year 100%

Second year -50%

A) 0%

B) 25%

C) 50%

D) 100%

Please show work

Reference no: EM13945315

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