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a/ calculate P0 b/ calculate P1 c/ calculate S3 d/ calculate D The time weighted rate of return (geometric mean) for Dr: Boukhris, CFA
a/ calculate "P0"
b/ calculate "P1"
c/ calculate "S3"
d/ calculate "D"
The time weighted rate of return (geometric mean) for "Dr: Boukhris, CFA " investment equals 32.33455082%. * He bought 2 stocks three years ago for a price of "P0" each * He bought 5 of the same stock two years ago for a price of "P1" each * He bought 4 of the same stock one year ago for a price of "P2" each. * He finally has just sold all the stocks he holds for a price of "S3" each. Let's denote "R1", "R2", and 'R3", the returns for periods 1,2 , and 3 respectively. Each stock receives the same amount of dividend "D" by the end of each period. Given the following information: - R2=2R116% - P2=$11.53 - S3=2P0$2.425 - R3=150% - Ri=143% The time weighted rate of return (geometric mean) for "Dr: Boukhris, CFA " investment equals 32.33455082%. * He bought 2 stocks three years ago for a price of "P0" each * He bought 5 of the same stock two years ago for a price of "P1" each * He bought 4 of the same stock one year ago for a price of "P2" each. * He finally has just sold all the stocks he holds for a price of "S3" each. Let's denote "R1", "R2", and 'R3", the returns for periods 1,2 , and 3 respectively. Each stock receives the same amount of dividend "D" by the end of each period. Given the following information: - R2=2R116% - P2=$11.53 - S3=2P0$2.425 - R3=150% - Ri=143%Step by Step Solution
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