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As we know, dollar-weighted average return is a more accurate way to measure security return performance if we buy or sell securities from time to
As we know, dollar-weighted average return is a more accurate way to measure security return performance if we buy or sell securities from time to time. Suppose you have the following price information for a risky security for several recent years. Assume that the stock pays no dividends
Year | Beginning of year price | # of share bought or sold |
2017 | $50 | 100 bought |
2018 | $55 | 50 bought |
2019 | $51 | 75 sold |
2020 | $54 | 75 sold |
What is the dollar-weighted average return over the entire trading period?
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