Q3. An investor buys one share of stock for $100. At the end of year one she buys three more shares at $89 per share. At the end of year two she sells all four shares for $98 each. The stock paid a dividend of $1.00 per share at the end of year one and year two. What is the investor’s time-weighted rate of return? A) 0.06%. B) 6.35%. C) 11.24%.
Q4. Assume an investor makes the following investments: § Today, she purchases a share of stock in Redwood Alternatives for $50.00. § After one year, she purchases an additional share for $75.00. § After one more year, she sells both shares for $100.00 each. There are no transaction costs or taxes. The investor’s required return is 35.0%. During year one, the stock paid a $5.00 per share dividend. In year two, the stock paid a $7.50 per share dividend. The time-weighted return is: A) 23.2%. B) 51.7%. C) 51.4%. | 
发表于 2008-12-30 17:01
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