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A manager buys three shares of stock today, and then sells one of those shares each year for the next three years. His actions and
A manager buys three shares of stock today, and then sells one of those shares each year for the next three years. His actions and the price history of the stock are summarized below. The stock pays no dividends.
Time Price Action
$ Buy shares
Sell share
Sell share
Sell share
Required:
a Calculate the timeweighted geometric average return on this portfolio. Do not round intermediate calculations. Round your answer to decimal places.
b Calculate the timeweighted arithmetic average return on this portfolio. Do not round intermediate calculations. Round your answer to decimal places.
c Calculate the dollarweighted average return on this portfolio. Do not round intermediate calculations. Round your answer to decimal places.
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