1. The balance of a mutual fund on January 1, 2021 is 1,000. The following table includes all cash flow information over the one-year period ending on December 31, 2021: Date Value of fund immediately Cash flow zam prior to the cash flow 1,200 1,500 1,100 200 -500 200 March 31, 2021 June 30, 2021 September 30, 2021 The balance of the mutual fund on December 31, 2021, is X. The annual effective time weighted rate of return 20.888%. Using a simple interest approximation, determine the dollar weighted rate of return.
1. The balance of a mutual fund on January 1, 2021 is 1,000. The following table includes all cash flow information over the one-year period ending on December 31, 2021: Date Value of fund immediately Cash flow zam prior to the cash flow 1,200 1,500 1,100 200 -500 200 March 31, 2021 June 30, 2021 September 30, 2021 The balance of the mutual fund on December 31, 2021, is X. The annual effective time weighted rate of return 20.888%. Using a simple interest approximation, determine the dollar weighted rate of return.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![1. The balance of a mutual fund on January 1, 2021 is 1,000. The following table
includes all cash flow information over the one-year period ending on December 31,
2021:
isak) sopbudiyrove to bae ad te (X
Date
(0) X aysq
Value of fund immediately Cash flow zamil
prior to the cash flow
1,200
1,500
1,100
200
-500
200
March 31, 2021
June 30, 2021
September 30, 2021
The balance of the mutual fund on December 31, 2021, is X.
The annual effective time weighted rate of return 20.888%.
Using a simple interest approximation, determine the dollar weighted rate of return.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F94b5d9e5-a910-4586-8266-4b923c499ba5%2F3ba5bf9a-1475-4a06-a2ab-61f2dff02be5%2Fzdrp30a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. The balance of a mutual fund on January 1, 2021 is 1,000. The following table
includes all cash flow information over the one-year period ending on December 31,
2021:
isak) sopbudiyrove to bae ad te (X
Date
(0) X aysq
Value of fund immediately Cash flow zamil
prior to the cash flow
1,200
1,500
1,100
200
-500
200
March 31, 2021
June 30, 2021
September 30, 2021
The balance of the mutual fund on December 31, 2021, is X.
The annual effective time weighted rate of return 20.888%.
Using a simple interest approximation, determine the dollar weighted rate of return.
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