1.What are the arithmetic and geometric average returns for a stock with annual returns of 19 percent, 9 percent, '4 percent, and 13 percent? List the arithmetic answer first. 11.11 percent; 8.91 percent 9.25 percent; 11.11 percent 11.11 percent; 9.25 percent 8.91 percent; 9.25 percent 9.25 percent; 8.91 percent ----- 2. Suppose a stock had an initial price of $66 per share, paid a dividend of $1.8 per share during the year, and had an ending share price of $80. Compute the percentage total return. : 09_20_2012 23.94 19.75 29.70 25.14 ----- 3. A stock had returns of 18 percent, 15 percent, 13 percent, 2 percent, 13 percent, and 17 percent over the last six years. Required: (a) What is the arithmetic return for the stock? Choose one: 15.60% 13.20% 13.65% 13.00% 13.10% (b) What is the geometric return for the stock? Choose one: 13.24% 12.97% 12.87% 12.67% 15.64% ----- 4. Last year, you purchased a stock at a price of $60.00 a share. Over the course of the year, you received $1.60 in dividends and inflation averaged 2.1 percent. Today, you sold your shares for $64.50 a share. What is your approximate real rate of return on this investment? 9.6 percent 8.1 percent 12.3 percent 10.2 percent 5.4 percent ----- 5. A stock has returns of 5 percent, 20 percent, ?21 percent, and 20 percent for the past 4 years. Based on this information, what is the 95 percent probability range for any one given year? ?16.4 to 22.4 percent ?32.7 to 44.7 percent ?32.7 to 25.3 percent ?71.4 to 83.4 percent ?13.3 to 25.3 percent