Question
XYZ stock price and dividend history are as follows: Year Bebinning -of -Year Price Dividend paid at Year End 2010 $100 $4 2011 $110 $4
XYZ stock price and dividend history are as follows:
Year Bebinning -of -Year Price Dividend paid at Year End
2010 $100 $4
2011 $110 $4
2012 $90 $4
2013 $95 $4
1,What is the arithmetic average rate of return? And Geometric average of return ?
2, Use the same information as in Question#3. Suppose that an investor buys three 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 four remaining shares at the beginning of 2013. What is the dollar-weighted rate of return (IRR)? Your answer should be in percentages and accurate to the hundredth.
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