XYZ stock price and dividend history are as follows: YearBeginning-of-Year Price Dividend Paid at Year-End 2010 $ 130 $ 52011 $ 144 $ 5 2012 $ 120 $ 5 2013 $ 125 $ 5 An investor buys sixshares of XYZ at the beginning of 2010, buys another three sharesat the beginning of 2011, sells one share at the beginning of 2012,and sells all eigth remaining shares at the beginning of 2013. a.What are the arithmetic and geometric average time-weighted ratesof return for the investor? (Do not round intermediatecalculations. Round your answers to 2 decimal places.) Arithmeticmean % Geometric mean % b-1. Prepare a chart of cash flows for thefour dates corresponding to the turns of the year for January 1,2010, to January 1, 2013. (Negative amounts should be indicated bya minus sign.) Date Cash Flow 1/1/2010 $ 1/1/2011 1/1/2012 1/1/2013b-2. What is the dollar-weighted rate of return? (Hint: If yourcalculator cannot calculate internal rate of return, you will haveto use a spreadsheet or trial and error.) (Negative value should beindicated by a minus sign. Round your answer to 4 decimal places.)Rate of return %
