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In-line exercise: security returns

Ursidae Corp's common stock was worth $50/share at the end of December, $55/share at the end of January, $50/share at the end of February, and $27/share at the end of March. There was a $10 dividend paid in February, and a 2-for-1 stock split in March. Compute the three monthly returns for Ursidae Corp.
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Phil Dybvig

I invite you to work on this in-line exercise. Press the small right triangle to see the solution. Even if you do not finish, I suggest working on the problem before looking at the answer. Then the answer will mean more to you because you will see where you got stuck.


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Copyright © Philip H. Dybvig 1997, 2000