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Suppose that you bought IBM 5 years ago at a price of $128 per share. The price has increased to $150...
a.) What is Standard Return for IBM's Stock over the entire 5 year period assuming IBM paid no
dividends over the 5 years?
b.) What is the Log Return for IBM's stock over the entire 5 year period assuming IBM paid no
dividends over the 5 years?
c.) What is Standard Return for IBM's Stock over the entire 5 year period assuming IBM paid $2.50 in
dividends in each of the 5 years?
d.) What is the Log Return for IBM's stock over the entire 5 year period assuming IBM paid $2.50 in
dividends in each of the 5 years?
e.) What impact did dividends have on IBM's calculated returns?
f.) Find the annually-compounded year-by-year return for parts a-d
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