Three years ago you bought 200 shares of stock trading at $40per share. One year after you bought the stock, it paid a dividendof $2 per share, which you then immediately reinvested inadditional (fractional) shares of stock (at a price of $45 pershare, which was the price immediately after the dividend waspaid). There were no other dividends or cash flows, and today thestock sells for $52 per share. What is the annualized time-weightedreturn (i.e, geometric average annual return or CAGR)? Express youranswer in decimal form, rounded and accurate to 5 decimal places(e.g., 0.12345).
