A manager buys three shares of stock today and then sells one of those shares...
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Accounting
A manager buys three shares of stock today and then sells one of those shares each year for the next 3 years. His actions and the price history of the stock are summarized below. The stock pays no dividends.
| Time | Price | Action |
|---|---|---|
| 0 | $ 135 | Buy 3 shares |
| 1 | 165 | Sell 1 share |
| 2 | 165 | Sell 1 share |
| 3 | 165 | Sell 1 share |
Required:
Calculate the time-weighted geometric average return on this portfolio.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Calculate the time-weighted arithmetic average return on this portfolio.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Calculate the dollar-weighted average return on this portfolio.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
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