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XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2007 $ 340 $ 6 2008 $ 350 $

XYZ stock price and dividend history are as follows:

Year Beginning-of-Year Price Dividend Paid at Year-End
2007 $ 340 $ 6
2008 $ 350 $ 6
2009 $ 330 $ 6
2010 $ 335 $ 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.

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 %

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.)

Year Cash flow
2007 $
2008 $
2009 $
2010 $

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