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2. You have the following rates of return for a risky portfolio for several recent years. Assume that the stock pays no dividends. Year 2008

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2. You have the following rates of return for a risky portfolio for several recent years. Assume that the stock pays no dividends. Year 2008 is time t=0, and 2009,2010 and 2011 are time t=1,t=2 and t=3 respectively. What are the cash flows to be considered for t=0,t=1,t=2 and t=3 if you want to calculate the dollarweighted return over the entire period? Please also indicate the signs, negative if it is outflow. (You can double check if you get the right answers by using an IRR equal to about 0.7437% )

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