Calculate the annual arithmetic mean and geometric mean return on the following security, purchase price $26; first-year dividend $3; price after one year = $31; second-year dividend = $3; selling price after two years = $24. (Round intermediate calculations to 3 decimal places, e.g. 15.251% and the final answers to 2 decimal places, e.g. 15.25%.) Arithmetic average return Geometric mean return % do do % State which method is more appropriate for the situation. Geometric mean Arithmetic average

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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Calculate the annual arithmetic mean and geometric mean return on the following security, purchase price = $26; first-year
dividend = $3; price after one year = $31; second-year dividend = $3; selling price after two years = $24. (Round intermediate
calculations to 3 decimal places, e.g. 15.251% and the final answers to 2 decimal places, e.g. 15.25%.)
Arithmetic average return
Geometric mean return
State which method is more appropriate for the situation.
Geometric mean
Arithmetic average
do
%
%
Transcribed Image Text:Calculate the annual arithmetic mean and geometric mean return on the following security, purchase price = $26; first-year dividend = $3; price after one year = $31; second-year dividend = $3; selling price after two years = $24. (Round intermediate calculations to 3 decimal places, e.g. 15.251% and the final answers to 2 decimal places, e.g. 15.25%.) Arithmetic average return Geometric mean return State which method is more appropriate for the situation. Geometric mean Arithmetic average do % %
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