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Calculating Average Returns Assume AAA stock price evolves as follows: Year Buy or Sell Shares Price at Beginning of Year Dividend paid at Year End
- Calculating Average Returns
Assume AAA stock price evolves as follows:
Year | Buy or Sell Shares | Price at Beginning of Year | Dividend paid at Year End |
2012 | Buy 500 shares | $35 | $1.20 |
2013 | Sell 200 shares | $48 | $2.00 |
2014 | Buy 100 shares | $21 | $2.30 |
2015 | Sell 400 shares | $50 | $1.00 |
- What is the dollar-weighted return (IRR) for the four-year period?
- What is the time-weighted return- arithmetic average? Geometric average?
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