Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Creating Financial Value A Guide For Senior Executives With No Finance Background

Authors: Malcolm Allitt

1st Edition

1472922719, 978-1472922717

More Books

Students also viewed these Finance questions

Question

6. Click Continue, and then click OK. This will generate output.

Answered: 1 week ago

Question

Discuss the various types of policies ?

Answered: 1 week ago

Question

Briefly explain the various types of leadership ?

Answered: 1 week ago

Question

Explain the need for and importance of co-ordination?

Answered: 1 week ago

Question

Explain the contribution of Peter F. Drucker to Management .

Answered: 1 week ago

Question

Design a health and safety policy.

Answered: 1 week ago