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n3 ed out of Answer the following questions: i. Compare and contrast the geometric (dollar-weighted) average return and the arithmetic (dollar- weighted) average return. Discuss

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n3 ed out of Answer the following questions: i. Compare and contrast the geometric (dollar-weighted) average return and the arithmetic (dollar- weighted) average return. Discuss the advantages and disadvantages of each. (6 marks) ii. XYZ's stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End n 2018 122 4 2019 146 4 2020 110 4 2021 122 4 An investor buys three shares of XYZ at the beginning of 2018, buys another two shares at the beginning of 2019, sells one share at the beginning of 2020, and sells all four remaining shares at the beginning of 2021. What are the arithmetic and geometric average time-weighted rates of return for the investor? (7 marks) iii. What are some of the potential reasons for an upward sloping yield curve? What are some of the potential reasons for a downward sloping yield curve? (6 marks) 1 A B I > B $$

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