A manager buys three shares of stock today, and then sells one of those shares each year
Question:
a. Calculate the time-weighted geometric average return on this portfolio.
b. Calculate the time-weighted arithmetic average return on this portfolio.
c. Calculate the dollar-weighted average return on thisportfolio.
Transcribed Image Text:
Time Price Action 0 90 Buy 3 shares 100 Sell 1 share 100 Sell 1 share 100 Sell 1 share
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Time Cash flow Holding period return 0 390 270 1 100 1009090 1111 2 ...View the full answer
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