Assume and investor purchases a share of stock for $50 at time t=0, and another share at $65 at time t=1, and at the end of year 1 and year 2, the stock paid a $2 div. Also at the end of year 2, the investor sold both shares for $70 each. What is the time weighted rate of return on the investment? A 21.83% B 18.04% C 20.13% D 18.27% … . . . . . . . . . . . . . answer is A, can someon please help me understand the calculation? thanks
Time weighted return Calculate HPR for each period Period 1: (65 - 50 + 2 ) / 50 = 34% Period 2: (140 - 130 + 4) / 130 = 10.77% 21.83%
http://www.stalla.com/systemSamples/lecture%20notes%20sample.pdf Page 22, what’s the solution?
Think I got it. C
cpk is right on calculation. Answer is A.
Cpk is right on A for tokyo’s problem. I meant to the powerpoint I posted on slide 22. I answer C http://www.stalla.com/systemSamples/lecture%20notes%20sample.pdf