XYZ's stock price and dividend history are as follows: ...
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Accounting
XYZ's stock price and dividend history are as follows:
Year
Beginning-of-Year Price
Dividend Paid at Year-End
2017
$
190
$
5
2018
200
5
2019
180
5
2020
190
5
An investor buys three shares of XYZ at the beginning of 2017, buys another two shares at the beginning of 2018, sells one share at the beginning of 2019, and sells all four remaining shares at the beginning of 2020.
a. What are the arithmetic & geometric average time-weighted rates of return for the investor?
b. What is the dollar-weighted rate of return?
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