Problem 24-7

A manager buys three shares of stock today, and then sells one of those shares each year for the next 3 years. His actions and the price history of the stock are summarized below. The stock pays no dividends.

Time	Price			Action
0	$	135		Buy 3 shares
1		165		Sell 1 share
2		165		Sell 1 share
3		165		Sell 1 share

a.	Calculate the time-weighted geometric average return on this portfolio. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Geometric average return

%

b.	Calculate the time-weighted arithmetic average return on this portfolio. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Arithmetic average return

%

c.	Calculate the dollar-weighted average return on this portfolio.(Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Dollar-weighted average return

%