XYZ stock price and dividend history are as below.

Year	Share price at the beginning of the year ($)	Dividend paid at the end of the year ($)
2014	120	4
2015	121	5
2016	115	3
2017	116	2
2018	117	6

An investor buys three shares of XYZ at the beginning of 2014, buys another two shares at the beginning of 2015, sells two shares at the beginning of 2016, buys two shares at the beginning of 2017 and sells all remaining shares at the beginning of 2018. Using the above information calculate the following for the investor:

a. Arithmetic average return

b. Geometric average return

c. Dollar-weighted rate of return

Answer rating: 100% (QA)

Income in year 2018 525117 595 Profit got 5 offers and 5 offer purchased Solution Sp ... View the full answer