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A manager buys four shares of stock today, and then sells one of those shares each year for the next 3 years. His actions and

A manager buys four shares of stock today, and then sells one of those shares each year for the next 3 years. His actions and the price history of the stock are summarized below. The stock pays no dividends. Time Price Action 0 $95 Buy 4 shares 1 $100 Sell 1 share 2 $100 Sell 1 share 3 $110 Sell 2 share (a) (4 marks) Calculate the time-weighted geometric average return and arithmetic average return on this portfolio. (b) (2 marks) Calculate the dollar-weighted average return on this portfolio

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