Consider an investment fund that starts out with £190,000. After one year, the value of the fund is £203,000. The investor deposits an additional £11,000 to the fund. After a second year, the value of the fund is £207,000. The investor withdraws £41,000. After a third year, the value of the investment fund is worth £177,000.   Compute the money-weighted rate of return  Enter a percentage correct to 1 decimal place   Compute the time-weighted rate of return  Enter a percentage correct to 1 decimal place

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
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Consider an investment fund that starts out with £190,000.

After one year, the value of the fund is £203,000. The investor deposits an additional £11,000 to the fund.

After a second year, the value of the fund is £207,000. The investor withdraws £41,000.

After a third year, the value of the investment fund is worth £177,000.

 

Compute the money-weighted rate of return

 Enter a percentage correct to 1 decimal place

 

Compute the time-weighted rate of return

 Enter a percentage correct to 1 decimal place

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