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Orange Computer, Inc.s stock prices at the end of the last four years were $25, $27.50, $22.50 and $28.75. Each year they paid a dividend
Orange Computer, Inc.s stock prices at the end of the last four years were $25, $27.50, $22.50 and $28.75. Each year they paid a dividend of $1 at the end of each year. You bought three shares at the end of the first year, bought two more shares at the end of the second year, sold one share at the end of the third year and sold four shares at the end of the fourth year.
A) What are your arithmetic and geometric average time-weighted rates of return?
B) What is your dollar weighted rate of return?
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