Problem: You have the following rates of return for a risky portfolio for several recent years. Assume that the stock pays no dividends.
Year Beginning of year price # shares bought or sold
2005 $50.00 100
2006 $55.00 50
2007 $51.00 75
2008 $54.00 75
a. What is the geometric average return for the period?
b. What is the dollar weighted return over the entire time period?