XYZ's stock price and dividend history are as follows: Beginning-of-Year Price Year 2019 $ 110 2020 120 2021 100 2022 110 O-1.34% -3.64% -2.58% -5.47% -0.37% Dividend Paid at Year- End $4 S444 An investor buys three shares of XYZ at the beginning of 2019, buys another two shares at the beginning of 2020, sells one share at the beginning of 2021, and sells all four remaining shares at the beginning of 2022. What is the dollar-weighted rate of return? (Hint: Carefully prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2019, to January 1, 2022.
XYZ's stock price and dividend history are as follows: Beginning-of-Year Price Year 2019 $ 110 2020 120 2021 100 2022 110 O-1.34% -3.64% -2.58% -5.47% -0.37% Dividend Paid at Year- End $4 S444 An investor buys three shares of XYZ at the beginning of 2019, buys another two shares at the beginning of 2020, sells one share at the beginning of 2021, and sells all four remaining shares at the beginning of 2022. What is the dollar-weighted rate of return? (Hint: Carefully prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2019, to January 1, 2022.
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
Related questions
Question

Transcribed Image Text:XYZ's stock price and dividend history are as follows:
Beginning-of-Year
Price
Year
2019 $ 110
2020 120
2021 100
2022 110
-1.34%
-3.64%
-2.58%
-5.47%
-0.37%
Dividend Paid at Year-
End
$4
4
44
An investor buys three shares of XYZ at the beginning of 2019, buys another two
shares at the beginning of 2020, sells one share at the beginning of 2021, and sells
all four remaining shares at the beginning of 2022. What is the dollar-weighted rate
of return? (Hint: Carefully prepare a chart of cash flows for the four dates
corresponding to the turns of the year for January 1, 2019, to January 1, 2022.
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