You have the following price for a stock for several recent years. Assume that the stock F year               Begining of year price                   # of shares bought or sold 2005                         $50                                              100 bought  2006                        $55                                                50 bought  2007                        $51                                                 75 sold  2008                        $54                                                75 sold  What is the holding period return for each year? What is the geometric average return for the period?  What is the dollar weighted return for the time period?

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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You have the following price for a stock for several recent years. Assume that the stock

F year               Begining of year price                   # of shares bought or sold

2005                         $50                                              100 bought 

2006                        $55                                                50 bought 

2007                        $51                                                 75 sold 

2008                        $54                                                75 sold 

  1. What is the holding period return for each year?
  2. What is the geometric average return for the period? 
  3. What is the dollar weighted return for the time period? 

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