Question
XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2007 $ 360 $ 6 2008 $ 370 $
XYZ stock price and dividend history are as follows: |
Year | Beginning-of-Year Price | Dividend Paid at Year-End |
2007 | $ 360 | $ 6 |
2008 | $ 370 | $ 6 |
2009 | $ 350 | $ 6 |
2010 | $ 355 | $ 6 |
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.
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.)
2. What is the dollar-weighted rate of return? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)
3. 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.)
Last response that chegg gave to this question was incorrect
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