You are the manager of the Mighty Fine mutual fund. The following table reflects the activity of the fund during the last quarter. The fund started the quarter on January 1 with a balance of $100 million. Highty Pine Mutual Pund Monthly Data (measured at end of month) January February -4.3 6.20 Мarch Net inflows ($ million) HPR () 5.5 -4.30 1.80 Required: a. Calculate the quarterly arithmetic average return on the fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Arithmetic average 1.23 % b. Calculate the quarterly geometric (time-weighted) average return on the fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Geometric average 1.14 % c. Calculate the quarterly dollar-weighted average return on the fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
You are the manager of the Mighty Fine mutual fund. The following table reflects the activity of the fund during the last quarter. The fund started the quarter on January 1 with a balance of $100 million. Highty Pine Mutual Pund Monthly Data (measured at end of month) January February -4.3 6.20 Мarch Net inflows ($ million) HPR () 5.5 -4.30 1.80 Required: a. Calculate the quarterly arithmetic average return on the fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Arithmetic average 1.23 % b. Calculate the quarterly geometric (time-weighted) average return on the fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Geometric average 1.14 % c. Calculate the quarterly dollar-weighted average return on the fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:You are the manager of the Mighty Fine mutual fund. The following table reflects the activity of the fund during the last
quarter. The fund started the quarter on January 1 with a balance of $100 million.
Mighty Fine Mutual Pund
Monthly Data (measured at end of month)
February
-4.3
6.20
March
January
5.5
Net inflows ($ million)
HPR ()
-4.30
1.80
Required:
a. Calculate the quarterly arithmetic average return on the fund. (Do not round intermediate calculations. Round your
answer to 2 decimal places.)
Arithmetic average
1.23 %
b. Calculate the quarterly geometric (time-weighted) average return on the fund. (Do not round intermediate
calculations. Round your answer to 2 decimal places.)
Geometric average
1.14 %
c. Calculate the quarterly dollar-weighted average return on the fund. (Do not round intermediate calculations. Round
your answer to 2 decimal places.)
Dollar-weighted average return
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