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Question
You have the following rates of return for a risky portfolio for several recent years. Assume that the stock pays no dividends.
| Year | Beginning of Year Price | # of Shares Bought or Sold | ||||
| 2014 | $ | 50.00 | 100 bought | |||
| 2015 | $ | 55.00 | 50 bought | |||
| 2016 | $ | 51.00 | 75 sold | |||
| 2017 | $ | 54.00 | 75 sold | |||
What is the geometric average return for the period?
A) 2.87%
B) .74%
C) 2.6%
D) 2.21%
Answer
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