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You have the following stock prices over several years. Assume that the stock pays no dividends. Year; Beginning of Year Price; # of Shares Bought
You have the following stock prices over several years. Assume that the stock pays no dividends. Year; Beginning of Year Price; # of Shares Bought or Sold 2005; $50; 100 Bought 2006; $55; 50 Bought 2007; $51; 75 Sold 2008; $54; 75 Sold Taking into account stock purchases and sales data shown, what is the dollar weighted annual return over the entire time period? 2.87% 0.74% 2.60% 2.21% Here is what I have so far: I have calculated the Cash flows for the years... I know you are to then divide by l+IRR^n... but for some reason I'm not getting the right answer. Cash Flows 2005 2006 2007 2008 -5000 -2250 3525 4050
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