The time-weighted rate and dollar-weighted rate of return for a pension fund which is having initia invetsment of $ 500000 and an another investment of $ 500000 in the beginning of second year and is earning 15 % and 10 % in the first and second year respectively. Introduction: Time-weighted rates of return , also known as geometric return, is a return on investment which shows that how much return investor has earned every year over a period of investment. The reason for this name is the equal weight given to each return in the geometric average. Dollar- weighted average return means rate of return of an investment, which takes effect into account the timimg of flows. Its is somewhere different from time-weighted rate of return. Dollar- weighted average return is somewhere similar to IRR .

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Answer 1

Question

Chapter 18, Problem 11CP

Summary Introduction

To calculate:

The time-weighted rate and dollar-weighted rate of return for a pension fund which is having initia invetsment of $500000 and an another investment of $500000 in the beginning of second year and is earning 15% and 10% in the first and second year respectively.

Introduction:

Time-weighted rates of return, also known as geometric return, is a return on investment which shows that how much return investor has earned every year over a period of investment. The reason for this name is the equal weight given to each return in the geometric average.

Dollar- weighted average return means rate of return of an investment, which takes effect into account the timimg of flows. Its is somewhere different from time-weighted rate of return. Dollar- weighted average return is somewhere similar to IRR.

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Answer 2

Question

Chapter 18, Problem 11CP

Summary Introduction

To calculate:

The time-weighted rate and dollar-weighted rate of return for a pension fund which is having initia invetsment of $500000 and an another investment of $500000 in the beginning of second year and is earning 15% and 10% in the first and second year respectively.

Introduction:

Time-weighted rates of return, also known as geometric return, is a return on investment which shows that how much return investor has earned every year over a period of investment. The reason for this name is the equal weight given to each return in the geometric average.

Dollar- weighted average return means rate of return of an investment, which takes effect into account the timimg of flows. Its is somewhere different from time-weighted rate of return. Dollar- weighted average return is somewhere similar to IRR.

Expert Solution & Answer

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Answer 3

Question

Chapter 18, Problem 11CP

Summary Introduction

To calculate:

The time-weighted rate and dollar-weighted rate of return for a pension fund which is having initia invetsment of $500000 and an another investment of $500000 in the beginning of second year and is earning 15% and 10% in the first and second year respectively.

Introduction:

Time-weighted rates of return, also known as geometric return, is a return on investment which shows that how much return investor has earned every year over a period of investment. The reason for this name is the equal weight given to each return in the geometric average.

Dollar- weighted average return means rate of return of an investment, which takes effect into account the timimg of flows. Its is somewhere different from time-weighted rate of return. Dollar- weighted average return is somewhere similar to IRR.

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Answer 4

Question

Chapter 18, Problem 11CP

Summary Introduction

To calculate:

The time-weighted rate and dollar-weighted rate of return for a pension fund which is having initia invetsment of $500000 and an another investment of $500000 in the beginning of second year and is earning 15% and 10% in the first and second year respectively.

Introduction:

Time-weighted rates of return, also known as geometric return, is a return on investment which shows that how much return investor has earned every year over a period of investment. The reason for this name is the equal weight given to each return in the geometric average.

Dollar- weighted average return means rate of return of an investment, which takes effect into account the timimg of flows. Its is somewhere different from time-weighted rate of return. Dollar- weighted average return is somewhere similar to IRR.

Expert Solution & Answer

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Answer 5

Chapter 18, Problem 11CP

Summary Introduction

To calculate:

The time-weighted rate and dollar-weighted rate of return for a pension fund which is having initia invetsment of $500000 and an another investment of $500000 in the beginning of second year and is earning 15% and 10% in the first and second year respectively.

Introduction:

Time-weighted rates of return, also known as geometric return, is a return on investment which shows that how much return investor has earned every year over a period of investment. The reason for this name is the equal weight given to each return in the geometric average.

Dollar- weighted average return means rate of return of an investment, which takes effect into account the timimg of flows. Its is somewhere different from time-weighted rate of return. Dollar- weighted average return is somewhere similar to IRR.

Answer 6

Chapter 18, Problem 11CP

Summary Introduction

To calculate:

The time-weighted rate and dollar-weighted rate of return for a pension fund which is having initia invetsment of $500000 and an another investment of $500000 in the beginning of second year and is earning 15% and 10% in the first and second year respectively.

Introduction:

Time-weighted rates of return, also known as geometric return, is a return on investment which shows that how much return investor has earned every year over a period of investment. The reason for this name is the equal weight given to each return in the geometric average.

Dollar- weighted average return means rate of return of an investment, which takes effect into account the timimg of flows. Its is somewhere different from time-weighted rate of return. Dollar- weighted average return is somewhere similar to IRR.

Answer 7

Chapter 18, Problem 11CP

Summary Introduction

To calculate:

The time-weighted rate and dollar-weighted rate of return for a pension fund which is having initia invetsment of $500000 and an another investment of $500000 in the beginning of second year and is earning 15% and 10% in the first and second year respectively.

Introduction:

Time-weighted rates of return, also known as geometric return, is a return on investment which shows that how much return investor has earned every year over a period of investment. The reason for this name is the equal weight given to each return in the geometric average.

Dollar- weighted average return means rate of return of an investment, which takes effect into account the timimg of flows. Its is somewhere different from time-weighted rate of return. Dollar- weighted average return is somewhere similar to IRR.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 18.1 - Prob. 1EQ Ch. 18.1 - Which fund would you choose if you were...Ch. 18.6 - Prob. 1EQ Ch. 18.6 - What would happen to the contribution of security...Ch. 18 - Prob. 1PS Ch. 18 - Is it possible for a positive alpha to be...Ch. 18 - Prob. 3PS Ch. 18 - Prob. 5PS Ch. 18 - 6. stock price and dividend history are as...Ch. 18 - Prob. 7PS

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