Tabcorp share prices gave a realised return of 20%, 10%, -10%, and -10% over four successive quarters. What is the annual realised return for Tabcorp for the year?

Name: Tabcorp share prices gave a realised return of 20%, 10%, -10%, and -10% over four successive quarters. What is the annual realised return for Tabcorp for the year?
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Question

Quizplus · Accepted Answer

The annualised return is calculated as (1 + 0.20) * (1 + 0.10) * (1 + -0.10) * (1 + -0.10) - 1 = 0.0692 or 6.92%.

Tabcorp Share Prices Gave a Realised Return of 20%, 10