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XYZ ' s stock price and dividend history are as follows: An investor buys three shares of XYZ at the beginning of 2 0 1
XYZs stock price and dividend history are as follows:
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
Required:
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 IRR, you will have to use trial and error or a
spreadsheet program.Round your answer to decimal places. Negative amount should be indicated by a minus sign.
Dollarweighted rate of return
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