Calculating Returns

Mathematical Exercise:
Returns on Enron

In the table below are the quarterly closing prices for Enron Corp in 2001.

Date	Price
December 31, 2000	$83.12
March 31, 2001	$58.10
June 30, 2001	$49.10
September 30, 2000	$27.23
December 31, 2001	$0.60

1. Calculate the quarterly rates of return for 2001

2. Statistical Rates of Return
   1. What is the total rate of return on Enron for 2001
   2. What is the average quarterly return on Enron for 2001

3. Time Weighted Rates of Return
   1. What is the total rate of return on Enron for 2001
   2. What is the average quarterly return on Enron for 2001

4. Calculate the Holding period return on Enron for 2001