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XYZ ' s stock price and dividend history are as follows: Year Beginning - of - Year Price Dividend Paid at Year - End 2
XYZs stock price and dividend history are as follows:
Year BeginningofYear Price Dividend Paid at YearEnd
$ $
An investor buys three shares of XYZ at the beginning of buys another two shares at the beginning of sells one share at the beginning of and sells all four remaining shares at the beginning of
a What are the arithmetic and geometric average timeweighted rates of return for the investor? Round your yearbyyear rates of return and final answers to decimal places. Do not round other calculations.
b What is the dollarweighted rate of return? Hint: Carefully prepare a chart of cash flows for the four dates corresponding to the turns of the year for January to January If your calculator cannot calculate internal rate of return, you will have to use trial and error.Round your answer to decimal places. Negative amount should be indicated by a minus sign.
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