he Ving WS Valuc aone-year penc Duration Fund Value Immediately in Years Contribution Before Contribution $1,000 1/4 1,025 3/4 -2X 1,175 200 975 The dollar-weighted rate of returm over the year is calculated as 12%, using simple interest from the late of each contribution. What is the time-weighted rate of return over the year?

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
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Multiple Choice: 8.28%, 14.13%, 11.73%, 10.05%

The following schedule shows the investments into a fund and the fund value over a one-year period:
Fund Value Immediately
Before Contribution
Duration
in Years
Contribution
$1,000
1/4
1,025
3/4
-2X
1,175
1
200
975
The dollar-weighted rate of return over the year is calculated as 12%, using simple interest from the
date of each contribution. What is the time-weighted rate of return over the year?
Transcribed Image Text:The following schedule shows the investments into a fund and the fund value over a one-year period: Fund Value Immediately Before Contribution Duration in Years Contribution $1,000 1/4 1,025 3/4 -2X 1,175 1 200 975 The dollar-weighted rate of return over the year is calculated as 12%, using simple interest from the date of each contribution. What is the time-weighted rate of return over the year?
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