Given that with a $10,000 investment in VUG in 2011, the cumulative growth as of the end of 2020 in VUG is $46,109. Calculate AND interpret the geometric average return for VUG during the 10-year period.

1. Walt and Cady Longmire were investing in shares of Wyoming Mining Company. The returns for the stocks during 2017, 2018, and 2019 were 10%, -5%, and 23.5%, respectively. At the beginning of 2017, Walt invested $5,000 in the stocks and he did not make any additional investment in 2018. At the end of 2018, Walt cashed out his entire investment in Wyoming Mining Company.

Meanwhile, his daughter Cady Longmire invested $100 in the stocks at the beginning of 2017. She later invested $4,500 at the beginning of 2018. At the beginning of 2019, upon seeing prior year poor performance, Cady withdrew $4,000 from her investment. At the end of 2019, Cady cashed out her entire investment in Wyoming Mining Company.

Answer the following:

1. Calculate and interpret Walts dollar-weighted average return for his 2-year investment in Wyoming Mining Company.
2. Compare Walts dollar-weighted average return to the geometric average return (for the 2-year investment period), do your answers make sense? Why or Why not? Did you have any expectations prior to your calculation?
3. Calculate and interpret Cadys dollar-weighted average return for her 3-year investment in Wyoming Mining Company.
4. Compare Cadys dollar-weighted average return to the geometric average return (for the 3-year investment period), do your answers make sense? Why or Why not? Did you have any expectation prior to your calculation?