Walt and Cady Longmire were investing in shares of Wyoming Mining Company. The returns for...
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Walt and Cady Longmire were investing in shares of Wyoming Mining Company. The returns for the stocks during 2017, 2018, and 2019 were 10%, -5%, and 23.5%, respectively. At the beginning of 2017, Walt invested $5,000 in the stocks and he did not make any additional investment in 2018. At the end of 2018, Walt cashed out his entire investment in Wyoming Mining Company.
Meanwhile, his daughter Cady Longmire invested $3,000 in the stocks at the beginning of 2017. She later made no deposit in 2018 but invested an additional $5,000 at the start of 2019. At the end of 2019, Cady cashed out her entire investment in Wyoming Mining Company.
Answer the following:
Calculate and interpret Walts dollar-weighted average return for his 2-year investment in Wyoming Mining Company.
Calculate and interpret Cadys dollar-weighted average return for her 3-year investment in Wyoming Mining Company.
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