Question
XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2010 $ 122$ 5 2011 132$ 5 2012 $
XYZ stock price and dividend history are as follows:
Year Beginning-of-Year Price Dividend Paid at Year-End
2010 $ 122$ 5
2011 132$ 5
2012 $ 110$ 5
2013 $ 115$ 5
An investor buys six 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 seven 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. Enter your answer as a percentage rounded to two decimal places.)
b.To compute dollar-weighted return, make a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2010, to January 1, 2013.(Enter your answer as an integer. Negative amounts should be indicated by a minus sign.)
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