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Question B2 (20 marks) XYZ stock price and dividend history are as follows: Year 2016 2017 2018 2019 Price at the beginning Dividend paid at

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Question B2 (20 marks) XYZ stock price and dividend history are as follows: Year 2016 2017 2018 2019 Price at the beginning Dividend paid at year end $100 $4 110 90 105 John buys four shares of XYZ at the beginning of 2016, buys another two shares at the beginning of 2017, sells one share at the beginning of 2018, and sells all five remaining shares at the beginning of 2019, Required: a. Compute the arithmetic and geometric average rates of return for John. b. Compute the dollar-weighted rate of return. c. Advise John which measure of return should use with justification. (5 marks) (11 marks) (4 marks)

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