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Suzie sold 250 shares of Twitter stock for $12 at the end of five years of holding the stock. She purchased the stock for $9.

Suzie sold 250 shares of Twitter stock for $12 at the end of five years of holding the stock. She purchased the stock for $9. The value of the stock was $10, $9, $7, $10, and $12 at the end of years 1-5, respectively. Suzie received no dividends. When she purchased the 250 shares, she paid $65 total in commission and $70 total in commission when she sold her shares. During Feb 28 of year 3, she made a withdrawal of $45. During December 1 of year 1, she made a deposit of $150. Assume the deposits and withdrawals do not include any transaction costs.

  • What is her year 5 HPR using dollar-weighted ["12.5%", "20.0%", "15.4%", "17.2%"] and ["19.4%", "21.4%", "20.0%", "17.3%"] return methodologies?
  • What is her 5 year average arithmetic ["8.8%", "8.4%", "7.2%", "8.1%"] annual return (using time-weighted HPRs)?
  • What is her 5 year average geometric ["1.3%", "8.4%", "5.9%", "2.4%"] annual return (using time-weighted HPRs)?
  • If she owned one other stock, which made a geometric 5-year average return of 2.45%, and this stock was 45% of her portfolio, what is her weighted ["5.9%", "8.4%", "4.4%", "3.9%"] average portfolio return (use only geometric returns).

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