Assume an investor made a lump-sum $836 purchase on the first day of the year as shown in the table below. a. Use the information provided to complete the table below. Money Shares Total Shares Owned Market Quarter Price Invested Purchased Value $31 $836 $46 AWN $59 $42 SO Total $836 b. Assume that instead of investing $836 as a lump-sum investment, the investor decided to invest $209 at the beginning of every quarter. If at year-end the price of the stock closed at $42 per share, which investment strategy, dollar cost averaging or lump-sum investing produced the greater return? a. If $836 was invested when the stock price was $31, the number of shares purchased in Quarter 1 are shares. (Round to two decimal places.) The number of shares purchased in Quarters 2, 3 and 4 was |shares. (Round to two decimal places.) The amount of Total Shares Owned at the end of Quarter 1 is | | shares. (Round to two decimal places.) The amount of Total Shares Owned at the end of Quarter 2 is | | shares. (Round to two decimal places.) The amount of Total Shares Owned at the end of Quarter 3 is | | shares. (Round to two decimal places.) The amount of Total Shares Owned at the end of Quarter 4 is | | shares. (Round to two decimal places.) The Market Value at the end of Quarter 1 is $ . (Round to the nearest cent.) The Market Value at the end of Quarter 2 is $ . (Round to the nearest cent.) The Market Value at the end of Quarter 3 is $ . (Round to the nearest cent.) The Market Value at the end of Quarter 4 is $ . (Round to the nearest cent.) b. Given the table below showing the result if the investor invested $209 each quarter rather than a lump-sum investment of $836, decide which investment strategy, dollar cost averaging or lump-sum investing produced the greater return. Money Shares Total Shares Owned Market Quarter Price Invested Purchased Value $31 $209 6.74 6.74 208.94 $46 $209 4.54 11.28 518.88 WN $59 $209 3.54 14.82 874.38 $42 $209 4.98 19.80 831.60 Total $836 O A. In this case, dollar cost averaging produces the greater return. Lump-sum investing results in an ending value of $831.60 and dollar cost averaging results in an ending investment value of $1132.74. The investor earns an additional $301.14 ($1132.74 - $831.60) by investing $836 throughout the year. The lump-sum purchase results in the purchase of 26.97 shares with a final market value of $1132.74 (26.97 * $42), rather than only 19.80 shares with a final market value of $831.60 (19.80 * $42) from the dollar cost averaging method. The dollar cost averaging method results in a lower portfolio value because the price of the stock at quarter 2 and 3 were higher than the beginning and ending price. O B. In this case, lump-sum investing produces the greater return. Dollar cost averaging results in an ending value of $831.60 and lump-sum investing results in an ending investment value of $1132.74. The investor earns an additional $301.14 ($1132.74 - $831.60) by investing $836 at the beginning of the year. The lump-sum purchase results in the purchase of 26.97 shares with a final market value of $1132.74 (26.97 * $42), rather than only 19.80 shares with a final market value of $831.60 (19.80 x $42) from the dollar cost averaging method. The dollar cost averaging method results in a lower portfolio value because the price of the stock at quarter 2 and 3 were higher than the beginning and ending price