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2. Suppose that you purchase 100 shares of GM stock at the beginning of year 1, and purchase another 100 shares at the end of
2. Suppose that you purchase 100 shares of GM stock at the beginning of year 1, and purchase another 100 shares at the end of year 1. | ||||||||
You sell all 200 shares at the end of year 2. Assume that the price of GM was $50 at the beginning of year 1, $55 at the end of year 1 | ||||||||
and $66 at the end of year 2. | ||||||||
What is the arithmetic mean time-weighted return? What is geometric mean time-weighted return? | ||||||||
What is the dollar weighted return? |
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