Fund One   Fund Two Year Return     Return   2000           2001 9.20%     11.50%   2002 5.20%     -14.50%   2003 4.30%     -23.40%   2004 3.30%     42.40%   2005 7.00%     13.60%     1) Your initial investment in these two funds is $100 at the end of 2000. Using the returns given, find the value of each fund at the end of every year. 2) What is the EAIR (geometric average annual return) for each fund

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 10RE: If 90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of 23,138.32...
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100%
  Fund One   Fund Two
Year Return     Return  
2000          
2001 9.20%     11.50%  
2002 5.20%     -14.50%  
2003 4.30%     -23.40%  
2004 3.30%     42.40%  
2005 7.00%     13.60%  

 

1) Your initial investment in these two funds is $100 at the end of 2000. Using the returns given, find the value of each fund at the end of every year.

2) What is the EAIR (geometric average annual return) for each fund?

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