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XYZ stock price and dividend history are as follows: Dividend Paid at Year- End Year Beginning-of-Year Price 2007 2008 2009 2010 $360 $370 $350 $355

XYZ stock price and dividend history are as follows: Dividend Paid at Year- End Year Beginning-of-Year Price 2007 2008 2009 2010 $360 $370 $350 $355 An investor buys 3 shares of XYZ at the beginning of 2007, buys another 2 shares at the beginning of 2008, sells 1 share at the beginning of 2009, and sells all 4 remaining shares at the beginning of 2010. Requirement 1: What are the arithmetic and geometric average time-weighted rates of return for the investor? (Round your answers to 2 decimal places. Omit the "%" sign in your response.) Arithmetic mean Geometric mean $6 $6 $6 $6 1.27 % 1.20 % Rate of return Requirement 2: (a) What is the dollar-weighted rate of return? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places. Omit the "%" sign in your response.) % (b) Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2007, to January 1, 2010. (Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.)
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XYZ stock price and dividend history are as follows: An investor buys 3 shares of XYZ at the beginning of 2007, buys another 2 shares at the beginning of 2008, sells 1 share at the beginning of 2009, and sells all 4 remaining shares at the beginning of 2010. Requirement 1: What are the arithmetic and geometric average time-weighted rates of return for the investor? (Round your answers to 2 decimal places. Omit the "\%" sign in your response.) Requirement 2: (a) What is the dollar-weighted rate of return? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places. Omit the "\%" sign in your response.) Rate of return % (b) Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2007, to January 1, 2010. (Negative amounts should be indicated by a minus sign. Omit the " $ " sign in your response.)

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