A manager buys three shares of stock today and then sells one of those shares each year for the next three years. His actions and the price history of the stock are summarized below. The stock pays no dividends.

Time Price Action 0 $ 90 Buy 3 shares 1 100 Sell 1 share 2 100 Sell 1 share 3 100 Sell 1 share

a. Calculate the time-weighted geometric average return on this “portfolio.”

b. Calculate the time-weighted arithmetic average return on this portfolio.

c. Calculate the dollar-weighted average return on this portfolio.

.P-96