Question

calculate the return of stock X in May and June

6. The prices of Stock X are: Date 4/30/2019 5/31/2019 6/28/2019 Stock X $164.43 $161.33 $173.55 Calculate the returns of Stock X in May and June of 2019. [4 points)

Answer 1

Periodic return of stock = (Final price – Initial price + Dividend)/ Initial price

Return in May = ($ 161.33 - $ 164.43)/ $ 164.43

                        = - $ 3.1 /$ 164.43

                        = -0.018853007 or - 1.89 %

Return in June = ($ 173.55 - $ 161.33)/ $ 161.33

                        = $ 12.22 /$ 161.33

                        = 0.075745367 or 7.57 %