XYZ stock price and dividend history are as follows: Dividend Paid at Year-End $2 2 2 2 Year 2018 2019 2020 2021 Beginning-of- Year Price $ 104 115. 90 105 An investor buys three shares of XYZ at the beginning of 2018, buys another one shares at the beginning of 2019, sells one sh the beginning of 2020, and sells all three remaining shares at the beginning of 2021. Required:
XYZ stock price and dividend history are as follows: Dividend Paid at Year-End $2 2 2 2 Year 2018 2019 2020 2021 Beginning-of- Year Price $ 104 115. 90 105 An investor buys three shares of XYZ at the beginning of 2018, buys another one shares at the beginning of 2019, sells one sh the beginning of 2020, and sells all three remaining shares at the beginning of 2021. Required:
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
Problem 1PS
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Bhupatbhai
Transcribed Image Text:XYZ stock price and dividend history are as follows:
Dividend Paid at
Year-End
$2
Year
2018
2019
2020
2021
Beginning-of-
Year Price
$ 104
115
90
105
An investor buys three shares of XYZ at the beginning of 2018, buys another one shares at the beginning of 2019, sells one share at
the beginning of 2020, and sells all three 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 bound intermediate
calculations. Round your answers to 2 decimal places.)
Arithmetic time-weighted average returns
Geometric time-weighted average returns
2
2
2
Date
01/01/2018
01/01/2019
01/01/2020
01/01/2021
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.)
Cash Flow
%
%
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