George Lennon buys 250 shares of ABB on 1 January 2016 at a price of $256.30...

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George Lennon buys 250 shares of ABB on 1 January 2016at a price of $256.30 per share. A dividend of $5 per share is paidon 1 January 2017. Assume that this dividend is not reinvested.Also on 1 January 2017, Lennon sells 90 shares at a price of $275per share. On 1 January 2018, he collects a dividend of $7 pershare (on 160 shares) and sells his remaining 160 shares at $299per share. Calculate the time-weighted rate of return on Lennon'sportfolio (write the answer in decimals, not %).
I calculated it and got 23.71% (0.2371) as a result andit was wrong.
Hope someone can help me out

Answer & Explanation Solved by verified expert

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Calculating Holding period return for 2016 Beginning value of portfolio No of shares bought on 1 Jan 2016 x price per share on 1 Jan 2016 250 x 25630 64075 Ending value of portfolio Value of shares at end of 2016 Dividends received No of shares bought on 1 Jan 2016 x price per See Answer

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George Lennon buys 250 shares of ABB on 1 January 2016at a price of $256.30 per share. A dividend of $5 per share is paidon 1 January 2017. Assume that this dividend is not reinvested.Also on 1 January 2017, Lennon sells 90 shares at a price of $275per share. On 1 January 2018, he collects a dividend of $7 pershare (on 160 shares) and sells his remaining 160 shares at $299per share. Calculate the time-weighted rate of return on Lennon'sportfolio (write the answer in decimals, not %).I calculated it and got 23.71% (0.2371) as a result andit was wrong.Hope someone can help me out