In: Finance
XYZ stock price and dividend history are as follows:
year |
beginning of year price |
dividend paid at year end |
2015 | 130 | 2 |
2016 | 153 | 2 |
2017 | 128 | 2 |
2018 | 133 | 2 |
An investor buys five shares of XYZ at the beginning of 2015, buys another two shares at the beginning of 2016, sells one share at the beginning of 2017, and sells all six remaining shares at the beginning of 2018. What is the dollar-weighted rate of return? (Hint: If your calculator cannot calculate internal rate of return, you will have to use a spreadsheet or trial and error.) (Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.)