Assume no dividends paid and the aar and gar are based on


Lucas sold his one stock for TLC, Inc at a price of $750. He purchased the stock 6 years ago. If his Arithmetic Average Return on the stock was 2.79% and his Geometric Average Return was 2.73%, what was his original purchase price? Assume no dividends paid and the AAR and GAR are based on annual rate of returns. (round to the nearest $1 and show your answer like this $394)

Solution Preview :

Prepared by a verified Expert
Finance Basics: Assume no dividends paid and the aar and gar are based on
Reference No:- TGS02766779

Now Priced at $10 (50% Discount)

Recommended (97%)

Rated (4.9/5)