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7. An investor buys four shares of ABC at the beginning of 2018, buys another two shares at the beginning of 2019, sells one share
7. An investor buys four shares of ABC at the beginning of 2018, buys another two shares at the beginning of 2019, sells one share at the beginning of 2020, and sells the remaining shares at the beginning of 2021. Use the table below to answer the following: a. What is the arithmetic time-weighted rate of return for an investor? b. What is the geometric average time-weighted rate of return for an investor? C. What is the dollar-weighted rate of return for an investor? d. Which of the three would you recommend should be used to assess the return? Why? Year 2018 2019 2020 2021 Beginning-of- Dividend Paid Year Price at Year-End $150 5 $160 5 $130 3 $145 4
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