1. A share of stock is purchased at t=0 for $100. At the end of year (t=1) another share is purchased for $130. At the end of year 2, both shares are sold for $150 each. At the end of years 1 and 2, the stock paid a $2.00 per share dividend.

1. What is the time-weighted rate of return on this investment?

2. What is the dollar-weighted rate of return on this investment?

3. Was the market timing favorable to the cash flows in this scenario?