The dollar-weighted average return on monthly basis for a household saving account. Introduction: Dollar- weighted average return means rate of return of an investment , which takes effect into account the timming of flows. Its is somewhere different from time weightet rate of return.Dollar- weighted average return is somewhere similar to IRR .

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Answer 1

Question

Chapter 18, Problem 1PS

Summary Introduction

To calculate:

The dollar-weighted average return on monthly basis for a household saving account.

Introduction:

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

Expert Solution & Answer

Answer to Problem 1PS

Cash flows either positive or negative or vice versa is divided by the total of of investment,through this dollar weighted average return for a particular period can be calcualted.

Explanation of Solution

Given Information:

The saving-account of a household and entries are on the first day of each month:

Month	Additions	Withdrawls	Value
January
February	2500
March	4000
April	1500
May	13460
June		23000
July	3000
August			198000

Household monthly Dollar Weighted Average Return can be calculated easily with the help of MS Office − Excel with the help of formulas. The calculations are shown under the snip of excel as attached below for reference:

CONNECT WITH LEARNSMART FOR BODIE: ESSE, Chapter 18, Problem 1PS

The value of portfolio is calculated on monthly basis post taking the effects of with drawls and additions. The period of addition and with drawl in months is then converted into days to compute the weighted period and then the weighted average return is calculated.

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Answer 2

Question

Chapter 18, Problem 1PS

Summary Introduction

To calculate:

The dollar-weighted average return on monthly basis for a household saving account.

Introduction:

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

Expert Solution & Answer

Answer to Problem 1PS

Cash flows either positive or negative or vice versa is divided by the total of of investment,through this dollar weighted average return for a particular period can be calcualted.

Explanation of Solution

Given Information:

The saving-account of a household and entries are on the first day of each month:

Month	Additions	Withdrawls	Value
January
February	2500
March	4000
April	1500
May	13460
June		23000
July	3000
August			198000

Household monthly Dollar Weighted Average Return can be calculated easily with the help of MS Office − Excel with the help of formulas. The calculations are shown under the snip of excel as attached below for reference:

CONNECT WITH LEARNSMART FOR BODIE: ESSE, Chapter 18, Problem 1PS

The value of portfolio is calculated on monthly basis post taking the effects of with drawls and additions. The period of addition and with drawl in months is then converted into days to compute the weighted period and then the weighted average return is calculated.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 18, Problem 1PS

Summary Introduction

To calculate:

The dollar-weighted average return on monthly basis for a household saving account.

Introduction:

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

Expert Solution & Answer

Answer to Problem 1PS

Cash flows either positive or negative or vice versa is divided by the total of of investment,through this dollar weighted average return for a particular period can be calcualted.

Explanation of Solution

Given Information:

The saving-account of a household and entries are on the first day of each month:

Month	Additions	Withdrawls	Value
January
February	2500
March	4000
April	1500
May	13460
June		23000
July	3000
August			198000

Household monthly Dollar Weighted Average Return can be calculated easily with the help of MS Office − Excel with the help of formulas. The calculations are shown under the snip of excel as attached below for reference:

CONNECT WITH LEARNSMART FOR BODIE: ESSE, Chapter 18, Problem 1PS

The value of portfolio is calculated on monthly basis post taking the effects of with drawls and additions. The period of addition and with drawl in months is then converted into days to compute the weighted period and then the weighted average return is calculated.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 18, Problem 1PS

Summary Introduction

To calculate:

The dollar-weighted average return on monthly basis for a household saving account.

Introduction:

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

Expert Solution & Answer

Answer to Problem 1PS

Cash flows either positive or negative or vice versa is divided by the total of of investment,through this dollar weighted average return for a particular period can be calcualted.

Explanation of Solution

Given Information:

The saving-account of a household and entries are on the first day of each month:

Month	Additions	Withdrawls	Value
January
February	2500
March	4000
April	1500
May	13460
June		23000
July	3000
August			198000

Household monthly Dollar Weighted Average Return can be calculated easily with the help of MS Office − Excel with the help of formulas. The calculations are shown under the snip of excel as attached below for reference:

CONNECT WITH LEARNSMART FOR BODIE: ESSE, Chapter 18, Problem 1PS

The value of portfolio is calculated on monthly basis post taking the effects of with drawls and additions. The period of addition and with drawl in months is then converted into days to compute the weighted period and then the weighted average return is calculated.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 18, Problem 1PS

Summary Introduction

To calculate:

The dollar-weighted average return on monthly basis for a household saving account.

Introduction:

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

Expert Solution & Answer

Answer to Problem 1PS

Cash flows either positive or negative or vice versa is divided by the total of of investment,through this dollar weighted average return for a particular period can be calcualted.

Explanation of Solution

Given Information:

The saving-account of a household and entries are on the first day of each month:

Month	Additions	Withdrawls	Value
January
February	2500
March	4000
April	1500
May	13460
June		23000
July	3000
August			198000

Household monthly Dollar Weighted Average Return can be calculated easily with the help of MS Office − Excel with the help of formulas. The calculations are shown under the snip of excel as attached below for reference:

CONNECT WITH LEARNSMART FOR BODIE: ESSE, Chapter 18, Problem 1PS

The value of portfolio is calculated on monthly basis post taking the effects of with drawls and additions. The period of addition and with drawl in months is then converted into days to compute the weighted period and then the weighted average return is calculated.

Answer 6

Chapter 18, Problem 1PS

Summary Introduction

To calculate:

The dollar-weighted average return on monthly basis for a household saving account.

Introduction:

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

Expert Solution & Answer

Answer to Problem 1PS

Cash flows either positive or negative or vice versa is divided by the total of of investment,through this dollar weighted average return for a particular period can be calcualted.

Explanation of Solution

Given Information:

The saving-account of a household and entries are on the first day of each month:

Month	Additions	Withdrawls	Value
January
February	2500
March	4000
April	1500
May	13460
June		23000
July	3000
August			198000

Household monthly Dollar Weighted Average Return can be calculated easily with the help of MS Office − Excel with the help of formulas. The calculations are shown under the snip of excel as attached below for reference:

CONNECT WITH LEARNSMART FOR BODIE: ESSE, Chapter 18, Problem 1PS

The value of portfolio is calculated on monthly basis post taking the effects of with drawls and additions. The period of addition and with drawl in months is then converted into days to compute the weighted period and then the weighted average return is calculated.

Answer 7

Chapter 18, Problem 1PS

Summary Introduction

To calculate:

The dollar-weighted average return on monthly basis for a household saving account.

Introduction:

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

Answer 8

Expert Solution & Answer

Answer to Problem 1PS

Cash flows either positive or negative or vice versa is divided by the total of of investment,through this dollar weighted average return for a particular period can be calcualted.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Given Information:

The saving-account of a household and entries are on the first day of each month:

Month	Additions	Withdrawls	Value
January
February	2500
March	4000
April	1500
May	13460
June		23000
July	3000
August			198000

Household monthly Dollar Weighted Average Return can be calculated easily with the help of MS Office − Excel with the help of formulas. The calculations are shown under the snip of excel as attached below for reference:

CONNECT WITH LEARNSMART FOR BODIE: ESSE, Chapter 18, Problem 1PS

The value of portfolio is calculated on monthly basis post taking the effects of with drawls and additions. The period of addition and with drawl in months is then converted into days to compute the weighted period and then the weighted average return is calculated.

Answer 12

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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