XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...

XYZ stock price and dividend history are as follows:

Year	Beginning-of-Year Price			Dividend Paid at Year-End
2015		$	102		$	3
2016			105			3
2017			91			3
2018			96			3

An investor buys three shares of XYZ at the beginning of 2015, buys another one shares at the beginning of 2016, sells one share at the beginning of 2017, and sells all three remaining shares at the beginning of 2018.

a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2015, to January 1, 2018. (Negative amounts should be indicated by a minus sign.)

b-2. 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.)

Expert Solution

jeff jeffy answered 2 years ago

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2010 $ 124 $ 4 2011 $ 135 $ 4 2012 $ 115 $ 4 2013 $ 120 $ 4 An investor buys six shares of XYZ at the beginning of 2010, buys another two shares at the beginning of 2011, sells one share at the beginning of 2012, and sells all seven remaining shares at...

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2010 $ 124 $ 4 2011 $ 135 $ 4 2012 $ 115 $ 4 2013 $ 120 $ 4 An investor buys six shares of XYZ at the beginning of 2010, buys another two shares at the beginning of 2011, sells one share at the beginning of 2012, and sells all seven remaining shares at...

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2010 $ 124 $ 4 2011 $ 135 $ 4 2012 $ 115 $ 4 2013 $ 120 $ 4 An investor buys six shares of XYZ at the beginning of 2010, buys another two shares at the beginning of 2011, sells one share at the beginning of 2012, and sells all seven remaining shares at...

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2010 $ 102 $ 3 2011 $ 105 $ 3 2012 $ 91 $ 3 2013 $ 96 $ 3 An investor buys three shares of XYZ at the beginning of 2010, buys another one shares at the beginning of 2011, sells one share at the beginning of 2012, and sells all three remaining shares at the beginning of 2013. a. What are the...

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2010 $ 140 $ 4 2011 $ 159 $ 4 2012 $ 132 $ 4 2013 $ 137 $ 4 An investor buys five shares of XYZ at the beginning of 2010, buys another three shares at the beginning of 2011, sells one share at the beginning of 2012, and sells all seven remaining shares at the beginning of 2013. a. What are the...

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2010 $ 124 $ 4 2011 $ 135 $ 4 2012 $ 115 $ 4 2013 $ 120 $ 4 An investor buys six shares of XYZ at the beginning of 2010, buys another two shares at the beginning of 2011, sells one share at the beginning of 2012, and sells all seven remaining shares at...

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2015 $ 130 $ 5 2016 144 5 2017 120 5 2018 125 5 An investor buys six shares of XYZ at the beginning of 2015, buys another three shares at the beginning of 2016, sells one share at the beginning of 2017, and sells all eight remaining shares at the beginning of 2018. a. What are the arithmetic and geometric average time-weighted rates...

XYZ stock price and dividend history are as follows: Year Beginning-of-year Price Dividend paid at Year-End...

XYZ stock price and dividend history are as follows: Year Beginning-of-year Price Dividend paid at Year-End 2010 $100 $4 2011 $110 $4 2012 $90 $4 2013 $95 $4 Compute the standard deviation of stock return.

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2015 $ 120 $ 2 2016 129 2 2017 115 2 2018 120 2 An investor buys six 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 seven remaining shares at the beginning of 2018. a. What are the arithmetic and geometric average time-weighted rates...

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2015 $ 114 $ 5 2016 120 5 2017 100 5 2018 105 5 An investor buys four 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 five remaining shares at the beginning of 2018. a. What are the arithmetic and geometric average time-weighted rates...

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XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...

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