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Exactly 4 years ago, you created a portfolio with the following: 200 shares of Stock X @ $20 per share. 350 shares of Stock Y
- Exactly 4 years ago, you created a portfolio with the following:
- 200 shares of Stock X @ $20 per share.
- 350 shares of Stock Y @ $49 per share.
You held this exact portfolio for 2 years, before selling off 100 shares of Stock Y (at the end of year 2). You kept the rest until the today (exactly four years from initiation), when you sold the entire portfolio. The relevant prices were:
| Stock X Price | Stock Y Price |
End of Year 1 | $24 | $52 |
End of Year 2 | $29 | $45 |
End of Year 3 | $26 | $49 |
End of Year 4 | $31 | $53 |
- What is your geometric average annual return? (15 pts)
- What is the dollar weighted average annual return? (5 pts)
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