A manager buys three shares of stock today, and sells one of those shares each year for
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Question:
A manager buys three shares of stock today, and sells one of those shares each year for the next three years. His actions and the price history of the stock are summarized below. The stock pays no dividends.
Time Price Action
$ Buy shares
Sell share
Sell share
Sell share
a Calculate the timeweighted geometric average return on this portfolioDo not round intermediate calculations. Round your answer to decimal places. Omit the sign in your response.
Geometric average return
b Calculate the timeweighted arithmetic average return on this portfolio. Do not round intermediate calculations. Round your answer to decimal places. Omit the sign in your response.
Arithmetic average return
c Calculate the dollarweighted average return on this portfolio. Do not round intermediate calculations. Round your answer to decimal places. Omit the sign in your response.
Dollarweighted average return
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