Arithmetic and geometric means of returns


The following were the stock prices for the XMen stock in the years 2004 through 2010.

DATE Price
3/1/2004 $50
3/1/2005 $46
3/1/2006 $76
3/1/2007 $80
3/1/2008 $85
3/1/2009 $90

(a) Calculate the returns for each year for XMen.

(b) Calculate the arithmetic and geometric means of the returns.

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Finance Basics: Arithmetic and geometric means of returns
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