An analyst gathered the following information about a common stock investment. The stock does not pay a dividend. The money-weighted and time-weighted rates of return on the investment are closest to: Date Amount Stock purchase 1 15 January 2006 €86 Stock purchase 2 15 January 2007 €94 Stock sale (2@106) 15 January 2008 €212 A) Money-weighted rate of return is 11.02% and Time-weighted rate of return is 8.53% B) Money-weighted rate of return is 11.02% and Time-weighted rate of return is 11.029% C) Money-weighted rate of return is 11.60% and Time-weighted rate of return is 11.02%
An analyst gathered the following information about a common stock investment. The stock does not pay a dividend. The money-weighted and time-weighted rates of return on the investment are closest to: Date Amount Stock purchase 1 15 January 2006 €86 Stock purchase 2 15 January 2007 €94 Stock sale (2@106) 15 January 2008 €212 A) Money-weighted rate of return is 11.02% and Time-weighted rate of return is 8.53% B) Money-weighted rate of return is 11.02% and Time-weighted rate of return is 11.029% C) Money-weighted rate of return is 11.60% and Time-weighted rate of return is 11.02%
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
Related questions
Question
An analyst gathered the following information about a common stock investment. The stock does not pay a dividend. The money-weighted and time-weighted
| Date | Amount | ||
| Stock purchase 1 | 15 January 2006 | €86 | |
| Stock purchase 2 | 15 January 2007 | €94 | |
| Stock sale (2@106) | 15 January 2008 | €212 |
A) Money-weighted rate of return is 11.02% and Time-weighted rate of return is 8.53%
B) Money-weighted rate of return is 11.02% and Time-weighted rate of return is 11.029%
C) Money-weighted rate of return is 11.60% and Time-weighted rate of return is 11.02%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education