What is the geometric average return for the period


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?

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