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Consider a sample of year-end prices for Alphabet, inc. (Google) over ative year perlod. Google did not pay a dividend over t
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Answer #1

Return in 2008 = (567.25 - 511.96)/511.96 *100% = 10.80%
Return in 2009 = (344.76 - 567.25)/567.25 *100% = -39.22%
Return in 2010 = (530.95 - 344.76)/344.76 *100% = 54.00%
Return in 2011 = (609.54 - 530.95)/530.95 *100% = 14.80%
Return in 2012 = (579.68 - 609.54)/609.54 *100% = -4.90%

Geometric Return = [(1+0.1080)(1-0.3922)(1+0.5400)(1+0.1480)(1-0.0490)]1/5 - 1 = 0.0252 or 2.52%

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