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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

  1. 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

  1. What is your geometric average annual return? (15 pts)
  2. What is the dollar weighted average annual return? (5 pts)

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