Question
Year Beginning-of-Year Price Dividend Paid at Year-End 2010 $ 114 $ 5 2011 $ 120 $ 5 2012 $ 100 $ 5 2013 $ 105
Year Beginning-of-Year Price Dividend Paid at Year-End 2010 $ 114 $ 5 2011 $ 120 $ 5 2012 $ 100 $ 5 2013 $ 105 $ 5 1.What are the arithmetic and geometric average time-weighted rates of return for the investor separtely? (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2.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.) 3.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.)
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