Question
Suppose you purchase one share of the stock of Cereal Correlation Company at the beginning of year 1 for $35. At the end of year
Suppose you purchase one share of the stock of Cereal Correlation Company at the beginning of year 1 for $35. At the end of year 1, you receive a $3 dividend, and buy one more share for $44. At the end of year 2, you receive total dividends of $6 (i.e., $3 for each share), and sell the shares for $50 each.
The time-weighted return on your investment is?
When performing the calculations, do not round any inputs or interim results until you get the final answer.
Round your final answer to four places after the decimal point.
The dollar-weighted return on your investment is?
When performing the calculations, do not round any inputs or interim results until you get the final answer.
Round your final answer to four places after the decimal point.
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