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you again receive $1 dividend per share and then you sell all your shares at $14 per share. The time- weighted geometric average return on this portfolio is approximately:

you again receive $1 dividend per share and then you sell all your shares at $14 per share. The time- weighted geometric average return on this portfolio is approximately:

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 2P
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Suppose you purchase 2 shares of Canadian Tire Corp. today at $11 per share. At the end of year 1 you receive $1 per share in dividends and you also buy 3 shares at $9 per share. At the end of year 2 you again receive $1 dividend per share and then you sell all your shares at $14 per share. The time- weighted geometric average return on this portfolio is approximately: а. 27.1% b. 18.9% С. 19.5% d. 31% е. 23.1%
Transcribed Image Text:Suppose you purchase 2 shares of Canadian Tire Corp. today at $11 per share. At the end of year 1 you receive $1 per share in dividends and you also buy 3 shares at $9 per share. At the end of year 2 you again receive $1 dividend per share and then you sell all your shares at $14 per share. The time- weighted geometric average return on this portfolio is approximately: а. 27.1% b. 18.9% С. 19.5% d. 31% е. 23.1%
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