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Problem 1 ABC stock price and dividend history are as follows: Year 2016 2017 2018 2019 Beginning-of-Year Price $30 $34 $28 $33 Dividend Paid at

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Problem 1 ABC stock price and dividend history are as follows: Year 2016 2017 2018 2019 Beginning-of-Year Price $30 $34 $28 $33 Dividend Paid at Year-End $2 $2 $2 $2 An investor buys 5 shares of XYZ at the beginning of 2016, buys another 4 shares at the beginning of 2017, sells 3 shares at the beginning of 2018, and sells all 6 remaining shares at the beginning of 2019. a) What are the arithmetic and geometric average time-weighted rates of return for the investor? (8 points) b) What is the dollar-weighted raterof return? (6 points - cash flow determination, 3 points - return calculation) Problem 1 ABC stock price and dividend history are as follows: Year 2016 2017 2018 2019 Beginning-of-Year Price $30 $34 $28 $33 Dividend Paid at Year-End $2 $2 $2 $2 An investor buys 5 shares of XYZ at the beginning of 2016, buys another 4 shares at the beginning of 2017, sells 3 shares at the beginning of 2018, and sells all 6 remaining shares at the beginning of 2019. a) What are the arithmetic and geometric average time-weighted rates of return for the investor? (8 points) b) What is the dollar-weighted raterof return? (6 points - cash flow determination, 3 points - return calculation)

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