you again receive $1 dividend per share and then you sell all your shares at $14 per share. The time- weighted geometric average return on this portfolio is approximately:

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
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Suppose you purchase 2 shares of Canadian Tire
Corp. today at $11 per share. At the end of year 1
you receive $1 per share in dividends and you also
buy 3 shares at $9 per share. At the end of year 2
you again receive $1 dividend per share and then
you sell all your shares at $14 per share. The time-
weighted geometric average return on this
portfolio is approximately:
а.
27.1%
b.
18.9%
С.
19.5%
d.
31%
е.
23.1%
Transcribed Image Text:Suppose you purchase 2 shares of Canadian Tire Corp. today at $11 per share. At the end of year 1 you receive $1 per share in dividends and you also buy 3 shares at $9 per share. At the end of year 2 you again receive $1 dividend per share and then you sell all your shares at $14 per share. The time- weighted geometric average return on this portfolio is approximately: а. 27.1% b. 18.9% С. 19.5% d. 31% е. 23.1%
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