A fund begins with $10 million and reports the following three-month results (with negativefigures in parentheses):Month:23Net cashflows (end of month, $ million).-10-3.0-518.486HPR (%)2.08.0(4.0)Compute the arithmetic, time-weighted, and dollar-weighted average returns.

Return on investment: In a very generic sense, returns on an investment refer to the gains or losses…

A fund begins with $10 million and reports the following three-month results (with negative figures in parentheses): Month: 1 3 Net cashflows (end of month, $ million). -10 -3.0 -5 18 486 HPR (%) 2.0 8.0 (4.0) Compute the arithmetic, time-weighted, and dollar-weighted average returns.

A fund begins with $10 million and reports the following three-month results (with negative figures in parentheses): Month: 1 3 Net cashflows (end of month, $ million). -10 -3.0 -5 18 486 HPR (%) 2.0 8.0 (4.0) Compute the arithmetic, time-weighted, and dollar-weighted average returns.

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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Question

A fund begins with $10 million and reports the following three-month results (with negative
figures in parentheses):
Month:
2
3
Net cashflows (end of month, $ million).
-10
-3.0
-5
18.486
HPR (%)
2.0
8.0
(4.0)
Compute the arithmetic, time-weighted, and dollar-weighted average returns.

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