Calculate the dollar-weighted average return on this


A manager buys three shares of stock today, and then sells one of those shares each year for the next 3 years. His actions and the price history of the stock are summarized below. The stock pays no dividends. Time Price Action 0 $ 120 Buy 3 shares 1 150 Sell 1 share 2 150 Sell 1 share 3 150 Sell 1 share a. Calculate the time-weighted geometric average return on this “portfolio.” (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.) Geometric average return % b. Calculate the time-weighted arithmetic average return on this portfolio. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.) Arithmetic average return % c. Calculate the dollar-weighted average return on this portfolio.(Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.) Dollar-weighted average return %

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Calculate the dollar-weighted average return on this
Reference No:- TGS02827962

Expected delivery within 24 Hours