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An investor bought 3 shares of stock A in 2010 after ex-dividend date. She purchased 2 more shares in 2011, sold 1 share in 2012

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An investor bought 3 shares of stock A in 2010 after ex-dividend date. She purchased 2 more shares in 2011, sold 1 share in 2012 and then sold all her holding in 2013 after ex-di date. The stock paid $2 dividend per share at the end of each year. new shares beg-of-Year stock price purchased (sold) 2010 $100 3 2011 110 2 2012 90 -1 2013 95 4 She can receives dividend payment at the beg-of-year 2012. Continued with previous question. The investor's net cash flow is $ at the beg-of-2013 The IRR of the investment is 2.2 ype here to search o Ri E 30 et yet Continued with previous question. The arithmetic average of the investment's yearly return during 2010-2013 05 its out of Flag estion estion 5 wered nts out of 0 Why the investment's arithmetic average return is positive while its money weighted average return is negative? There may be more than one answer in the choices Se ect one * a. The investor purchased at lower price and said at higher price on average, ob. The worst yeary retum occurred when the investor held more shares. O c The worst yeary return occurred when the investor held fewest shares. Flag Clear my choice Type here to search o PI 30 9 An investor bought 3 shares of stock A in 2010 after ex-dividend date. She purchased 2 more shares in 2011, sold 1 share in 2012 and then sold all her holding in 2013 after ex-di date. The stock paid $2 dividend per share at the end of each year. new shares beg-of-Year stock price purchased (sold) 2010 $100 3 2011 110 2 2012 90 -1 2013 95 4 She can receives dividend payment at the beg-of-year 2012. Continued with previous question. The investor's net cash flow is $ at the beg-of-2013 The IRR of the investment is 2.2 ype here to search o Ri E 30 et yet Continued with previous question. The arithmetic average of the investment's yearly return during 2010-2013 05 its out of Flag estion estion 5 wered nts out of 0 Why the investment's arithmetic average return is positive while its money weighted average return is negative? There may be more than one answer in the choices Se ect one * a. The investor purchased at lower price and said at higher price on average, ob. The worst yeary retum occurred when the investor held more shares. O c The worst yeary return occurred when the investor held fewest shares. Flag Clear my choice Type here to search o PI 30 9

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