YZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2018 $ 130 $ 2 2019 153 2 2020 128 2 2021 133 2 An investor buys five 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 six remaining shares at the beginning of 2021.
XYZ stock price and dividend history are as follows:
| Year | Beginning-of-Year Price | Dividend Paid at Year-End |
|---|---|---|
| 2018 | $ 130 | $ 2 |
| 2019 | 153 | 2 |
| 2020 | 128 | 2 |
| 2021 | 133 | 2 |
An investor buys five 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 six remaining shares at the beginning of 2021.
Required:
a. What are the arithmetic and geometric average time-weighted
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.)
b-2. What is the dollar-weighted rate of return? (Hint: If your calculator cannot calculate
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