During 2017, the stock returned a 17.65%. Returns for GM during 2018, 2019, and 2020 are

-18.39%, 9.42%, and 13.77%, respectively. Following are Clark and Lois cash inflows and outflows:

Clark deposited $1,000 into an investment account at the beginning of 2017. He later invested an additional $6,500 into his account at the beginning of 2018. At the beginning of 2019, Clark needed some cash and thus, withdrew $5,000 from the account. He neither deposited nor withdrew any amount at the beginning of 2020.

On the other hand, Lois started out with $2,500 at the beginning of 2017. Later on, she withdrew $1,500 at the beginning of 2018. At the beginning of 2019 and 2020, Lois invested an additional $500 each year. Both Clark and Lois liquidated their holdings and cashed out of their investments at the end of 2020. Calculate the following:

1. The arithmetic average return and the geometric average return for GM.
2. The dollar-weighted average return for Clark and Lois.
3. Examining all the number that you have calculated for Clark and Lois, what are your take-aways/observations? For instance, do the numbers that you have calculated make sense? Are they along the line of what you have expected? WHY is the dollar-weighted return for a certain investor higher/or lower than the others?