An investor bought 100 shares at $5.50 each. After one year, he received $0.75 dividend

per share and he bought 50 more shares at $5.89 each. After two years, he received

$0.65 dividend per share for all the holdings and he sold all the shares for $6.15 per

shares.

a) Calculate his annualized Time Weighted Return (TWR). (4 marks)

b) Calculate his annualized Money Weighted Return (MWR). (4 marks)

c) Which one should be more preferred by regulators? Explain. (2 marks)