Calculate time-weighted rate of return on lennon portfolio

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George Lennon buys 250 shares of ABB on 1 January 2016 at a price of $256.30 per share. A dividend of $5 per share is paid on 1 January 2017. Assume that this dividend is not reinvested. Also on 1 January 2017, Lennon sells 90 shares at a price of $275 per share. On 1 January 2018, he collects a dividend of $7 per share (on 160 shares) and sells his remaining 160 shares at $299 per share. Calculate the money-weighted rate of return on Lennon's portfolio (write the answer in decimals, not %). Calculate the time-weighted rate of return on Lennon's portfolio (write the answer in decimals, not %).

Reference no: EM132059508

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