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Walt and Cady Longmire were investing in shares of Wyoming Mining Company. The returns for the stocks during 2 0 1 7 , 2 0
Walt and Cady Longmire were investing in shares of Wyoming Mining Company. The returns for the stocks during and were and respectively. At the beginning of Walt invested $ in the stocks and he did not make any additional investment in At the end of Walt cashed out his entire investment in Wyoming Mining Company.
Meanwhile, his daughter Cady Longmire invested $ in the stocks at the beginning of She later made no deposit in but invested an additional $ at the start of At the end of Cady cashed out her entire investment in Wyoming Mining Company.
Answer the following:
i Calculate and interpret Walts dollarweighted average return for his year investment in Wyoming Mining Company.
ii Compare Walts dollarweighted average return to the geometric average return for the year investment period do your answers make sense? Why or Why not? Did you have any expectation prior to your calculation?
iii Calculate and interpret Cadys dollarweighted average return for her year investment in Wyoming Mining Company.
iv Compare Cadys dollarweighted average return to the geometric average return for the year investment period do your answers make sense? Why or Why not? Did you have any expectation prior to your calculation?
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