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4 XYZ stock price and dividend history are as follows: Beginning-of- Year Year Price Dividend Paid at Year-End 2018 $ 120 $ 2 2019 129 2 2020 pints 2021 115 120 2 2 An investor buys six shares of XYZ at the beginning of 2018, buys another two shares at the beginning of 2019, sells one share at the beginning of 2020, and sells all seven remaining shares at the beginning of 2021. Required: 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.) Answer is complete but not entirely correct. Arithmetic time-weighted average returns Geometric time-weighted average returns 1.99 % 1.59% b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2018, to January 1, 2021. (Negative amounts should be indicated by a minus sign.) Answer is complete but not entirely correct. Date Cash Flow 01/01/2018 $ (720) Return to ques

4 XYZ stock price and dividend history are as follows: Beginning-of- Year Year Price Dividend Paid at Year-End 2018 $ 120 $ 2 2019 129 2 2020 pints 2021 115 120 2 2 An investor buys six shares of XYZ at the beginning of 2018, buys another two shares at the beginning of 2019, sells one share at the beginning of 2020, and sells all seven remaining shares at the beginning of 2021. Required: 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.) Answer is complete but not entirely correct. Arithmetic time-weighted average returns Geometric time-weighted average returns 1.99 % 1.59% b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2018, to January 1, 2021. (Negative amounts should be indicated by a minus sign.) Answer is complete but not entirely correct. Date Cash Flow 01/01/2018 $ (720) Return to ques

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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4 XYZ stock price and dividend history are as follows: Beginning-of- Year Year Price Dividend Paid at Year-End 2018 $ 120 $ 2 2019 129 2 2020 pints 2021 115 120 2 2 An investor buys six shares of XYZ at the beginning of 2018, buys another two shares at the beginning of 2019, sells one share at the beginning of 2020, and sells all seven remaining shares at the beginning of 2021. Required: 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.) Answer is complete but not entirely correct. Arithmetic time-weighted average returns Geometric time-weighted average returns 1.99 % 1.59% b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2018, to January 1, 2021. (Negative amounts should be indicated by a minus sign.) Answer is complete but not entirely correct. Date Cash Flow 01/01/2018 $ (720) Return to ques
Transcribed Image Text:4 XYZ stock price and dividend history are as follows: Beginning-of- Year Year Price Dividend Paid at Year-End 2018 $ 120 $ 2 2019 129 2 2020 pints 2021 115 120 2 2 An investor buys six shares of XYZ at the beginning of 2018, buys another two shares at the beginning of 2019, sells one share at the beginning of 2020, and sells all seven remaining shares at the beginning of 2021. Required: 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.) Answer is complete but not entirely correct. Arithmetic time-weighted average returns Geometric time-weighted average returns 1.99 % 1.59% b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2018, to January 1, 2021. (Negative amounts should be indicated by a minus sign.) Answer is complete but not entirely correct. Date Cash Flow 01/01/2018 $ (720) Return to ques
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