A. Use the data given to calculate annual returns for Bartman, Reynolds, and the Market Index, and then
calculate average returns over the five-year period. (Hint: Remember, returns are calculated by subtracting the
beginning price from the ending price to get the capital gain or loss, adding the dividend to the capital gain or
loss, and dividing the result by the beginning price. Assume that dividends are already included in the index.
Also, you cannot calculate the rate of return for 1999 because you do not have 1998 data.)
See attached file for full problem description.
Corporate finance calculation of annual returns for Bartman, Reynolds and the Market Index.