XYZ stock price and dividend history are as follows: Beginning-of-Year Dividend Paid at Year Price Year-End 2015 $132 $ 2016 147 2017 120 2018 125 An investor buys five shares of XYZ at the beginning of 2015, buys another three shares at the beginning of 2016, sells one share at the beginning of 2017, and sells all seven remaining shares at the beginning of 2018. a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete and correct. Arithmetic mean 2.08 % Geometric mean 1.23 % b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2015, to January 1, 2018. (Negative amounts should be indicated by a minus sign.) Answer is complete and correct. MacBook Air F1 F2 GU F3 F4 F5 F6 F7 F8 F9 F10 a A & N 3 4 5 6 8 9 0 W E R T Y U O P S D F G H KTABLE 5.3 Risk and return of Investments in major asset classes, 1927-2016 T-bills T-bonds Stocks Arithmetic average 3.42 5.51 11.91 Risk premium NA 2.08 8.48 Standard deviation 3.14 814 19.99 max 1471 38.07 56.38 min -0.02 -8.47 -43.73 MacBook AirUsing Table 5.3 as your guide, what is your estimate of the expected armual HPR on the market index stock portfolio if the current risk- free interest rate is 5.7%? (Round your answer to 2 decimal places.) Expected annual HPR % ences Graw Hill MacBook Air 14 F7 F8 F9 F10 F11 F1 F2 20 F3 898 F4 F5 F6 # LA A & @ = NO 3 5 18 O Q W E R T Y U O P A S D F G H K Z X C V B N MV O Next & FT Z 4 0 10!! MacBook Air 14 I CO Using Table 5.3 as your guide, what is your estimate of the expected annual HPR on the market Index stock portfolio if the current risk- S LL U LU free interest rate is 5.717 (Round your answer to 2 decimal places.] X HE 3 Expected arrival HER N