XYZ stock price and dividend history are as follows

Question: XYZ stock price and dividend history are as follows

YearBeginning-of-Year PriceDividend Paid at Year-End
2010$ 100$ 4
2011$ 110$ 4
2012$ 90$ 4
2013$ 95$ 4

An investor buys three shares of XYZ at the beginning of 2010, buys another two shares at the beginning of 2011, sells one share at the beginning of 2012, and sells all four remaining shares at the beginning of 2013

a. What are the arithmetic and geometric average time-weighted rates of return for the investor?

b. What is the dollar-weighted rate of return?

Solution:

The following are the obtained results in spreadsheet:

The following are the data inputs in spreadsheet:

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