Scribd Logo
Upload

Welcome to Scribd!

  • Week 3 No 2

    Uploaded by

    Raka Kani
    6 views1 page

    Original Title

    week 3 no 2

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    6 views1 page

    Week 3 No 2

    Uploaded by

    Raka Kani

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 1

    XYZ

    Year End Shares


    Year Start Price Dividend bought
    2010 $ 100.00 $ 4.00 3.00
    2011 $ 110.00 $ 4.00 2.00
    2012 $ 90.00 $ 4.00 (1.00)
    2013 $ 95.00 $ 4.00 (4.00)

    Solution

    a. Return
    2011 14.00%
    2012 -14.55%
    2013 10.00%

    Arithmetic return = 3.15%

    Geometric return = 2.33%

    b.
    Cash Flow
    2010 $ (300.00)
    2011 $ (208.00)
    2012 110.00
    2013 396.00

    Dollar weighted rate of return = -0.17%

    You might also like