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XYZ stock price and dividend history are as follows Year 2010 2011 2012 2013 Beginning-of-Year Price $120 $ 129 $115 $120 Dividend Paid at Year-
XYZ stock price and dividend history are as follows Year 2010 2011 2012 2013 Beginning-of-Year Price $120 $ 129 $115 $120 Dividend Paid at Year- End $2 $2 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. Round your answers to 2 decimal places.) Arithmetic mean Geometric mean 1.98 % 1.05 % b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2010, to January 1, 2013. (Negative amounts should be indicated by a minus sign.) Date 1/1/2010 1/1/2011 1/1/2012 1/1/2013 Cash Flow b-2. What is the dollar-weighted rate of return? (Hint: If your calculator cannot calculate internal rate of return, you will have to use a spreadsheet or trial and error.) (Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.) Rate of return
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