Suppose that on January 1, 2021 the balance on a fund is $14940. Suppose that there are contributions to the fund of $5920, $2954, and $5916 made, respectively, on the first day of March, September, and November 2021. In addition, suppose that there are withdrawals from the fund of $5099 and $9068 made, respectively, on the first day of May and September. Finally, suppose that the balance of the fund on the last day of February, April, August, October, and December 2021 is, respectively, $28739, $36236, $32115, $30305, and $16445. (a) Find the dollar-weighted rate of return for the year. (b) Find the time-weighted rate of return for the year. A) 5.2% (B) 5.59% (C) 5.33% (D) 5.72% (E) 5.46% a): Select A) 9.64% (B) 9.77% (C) 9.25% (D) 9.51% (E) 9.38% (): Select
Suppose that on January 1, 2021 the balance on a fund is $14940. Suppose that there are contributions to the fund of $5920, $2954, and $5916 made, respectively, on the first day of March, September, and November 2021. In addition, suppose that there are withdrawals from the fund of $5099 and $9068 made, respectively, on the first day of May and September. Finally, suppose that the balance of the fund on the last day of February, April, August, October, and December 2021 is, respectively, $28739, $36236, $32115, $30305, and $16445. (a) Find the dollar-weighted rate of return for the year. (b) Find the time-weighted rate of return for the year. A) 5.2% (B) 5.59% (C) 5.33% (D) 5.72% (E) 5.46% a): Select A) 9.64% (B) 9.77% (C) 9.25% (D) 9.51% (E) 9.38% (): Select
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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Transcribed Image Text:Problem #11: Suppose that on January 1, 2021 the balance on a fund is $14940. Suppose that there are contributions to the
fund of $5920, $2954, and $5916 made, respectively, on the first day of March, September, and November
2021. In addition, suppose that there are withdrawals from the fund of $5099 and $9068 made, respectively, on
the first day of May and September. Finally, suppose that the balance of the fund on the last day of February,
April, August, October, and December 2021 is, respectively, $28739, $36236, $32115, $30305, and $16445.
(a) Find the dollar-weighted rate of return for the year.
(b) Find the time-weighted rate of return for the year.
(A) 5.2% (B) 5.59% (C) 5.33% (D) 5.72% (E) 5.46%
Problem #11(a): Select v
(A) 9.64% (B) 9.77% (C) 9.25% (D) 9.51% (E) 9.38%
Problem #11(b):
Select v
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