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XYZ stock price and dividend history are as follows: Beginning-of-Year Dividend Paid at Year Price Year-End 2010 $ 112 $ 2 2011 $ 117 $
XYZ stock price and dividend history are as follows: Beginning-of-Year Dividend Paid at Year Price Year-End 2010 $ 112 $ 2 2011 $ 117 $ 2 2012 $ 105 $ 2 2013 $ 110 An investor buys four shares of XYZ at the beginning of 2010, buys another two shares at the beginning of 2011, sells one share at the beginning of 2012, and sells all five remaining shares at the beginning of 2013. 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.) Arithmetic mean Geometric mean b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2010, to January 1, 2013. (Negative amounts should be indicated by a minus sign.) Cash Flow Date 1/1/2010 1/1/2011 1/1/2012 1/1/2013 b-2. What is the dollar-weighted rate of return? (Hint: If your calculator cannot calculate internal rate of return, you will have to use a spreadsheet or trial and error.) (Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.) Rate of return %
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