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**I have the 5.78% correct. However, I am having difficulty calculating the correct geometric average rate of return and dollar-weighted rate of return. Please advise.
**I have the 5.78% correct. However, I am having difficulty calculating the correct geometric average rate of return and dollar-weighted rate of return. Please advise. I always remember to up-vote if the answer is correct.**
XYZS stock price and dividend history are as follows: Dividend paid at Year-End Year 2017 Beginning-of-Year Price $ 13e 15e 12e 130 An Investor buys three shares of XYZ at the beginning of 2017. buys another two shares at the beginning of 2018, selis one share at the beginning of 2019, and sells all four remaining shares at the beginning of 2020. 6. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Round your year-by-year rates of return and final answer to 2 decimal places. Do not round other calculations.) 5.78 Asthmetic average rate of return Geometric average rate of return b. What is the dollar-weighted rate of return? (Hint Carefully prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2017 to January 1, 2020. If your calculator cannot calculate IRR. you will have to use trial and error or a spreadsheet program.) (Round your answers to 4 decimal places. Negative amount should be Indicated by a minus sign.) Dollar-weighted rate of returnStep by Step Solution
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