Versa Co share prices gave a realised return of 30%, -20%, -10%, and 5% over four successive quarters. What is the annual realised return for Versa Co for the year?

Question

Quizplus · Accepted Answer

To calculate the annual realised return, we multiply the returns of each quarter, considering each as a growth factor (1 + return), and then subtract 1 to get the overall growth rate. So, the calculation is as follows: (1 + 0.30) * (1 - 0.20) * (1 - 0.10) * (1 + 0.05) - 1 = (1.30) * (0.80) * (0.90) * (1.05) - 1 = 0.9828 - 1 = -0.0172 or -1.72%.

Versa Co Share Prices Gave a Realised Return of 30