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A manager buys three shares of stock today, and then sells one of those shares each year for the next 3 years. His actions and
A manager buys three 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 $ 175 Buy 3 shares 205 Sell 1 share 2 Sell 1 share 3 205 Sell 1 share 0 1 205 a. Calculate the time-weighted geometric average return on this portfolio. (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Geometric average return % b. Calculate the time-weighted arithmetic average return on this portfolio. (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Arithmetic average return c. Calculate the dollar-weighted average return on this portfolio. (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Dollar-weighted average return 96
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