Question
Arthur buys $1,500 worth of stock. Six months later, the value of the stock has risen to $1,700 and Arthur buys another $1,000 worth of
Arthur buys $1,500 worth of stock. Six months later, the value of the stock has risen to $1,700 and Arthur buys another $1,000 worth of stock. After another eight months, Arthur's holdings are worth $2,300 and he sells off $800 of them. Ten months later, Arthur finds that his stock has a value of $1,600.
(a)
Compute the annual time-weighted yield rate of the stock over the two-year period. (Round your answer to two decimal places.)
(b)
Compute the annual dollar-weighted yield for Arthur over the two-year period. (Round your answer to two decimal places.)
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