Example of Multiperiod Returns Time 0 1 1 2 Outlay $50 to purchase first share $53 to purchase second share a year later Proceeds $2 dividend from initially purchased share $4 dividend from the 2 shares held in the second year, plus $108 received from selling both shares at $54 each

How to find r1 and r2??

Example of Multiperiod Returns Dollar- and Time-Weighted Returns ( 1 of 2) - Time-weighted returns - The geometric average is a time-weighted average - Each period's return has equal weight (1+rG)nrG=(1+r1)(1+r2)(1+rn)=[(1+r1)(1+r2)(1+rn)]11