I don’t have the question but here is what I do know. Maybe they forgot something from the problem that would help solve: T0 = -86 T1 = - 94 T2 = +212 IRR = 11.60% I get that the HPR for the first period is 9.30% But they have the second period as (106-94)/94 = 12.76% Where did 106 come from? Then geo mean is 11.02%

Ah I remember this one; they sold both stocks at T2 for a price of 106 each…

Then I am confused as to how the HPR works on this then.

Can’t say I understand the logic, but on the few I saw in the mocks, you ignore anything you already calculated a return on, so 106 represents the sale of one share against the one you bought at the beginning of the period. I think it may work out the same if you assume a new basis for the existing share since you already counted its return in the first period, and say they are both now worth 94 at the beginning of the period and 212 at the end, so 212-188/188=12.76 What scares me is if they put dividends in, would they only affect the numerator for that period?

That makes soooo much more sense Marlin! Yes, put the dividends in according to the period they were received.