INVESTMENTS-CONNECT PLUS ACCESS
INVESTMENTS-CONNECT PLUS ACCESS
11th Edition
ISBN: 2810022611546
Author: Bodie
Publisher: MCG
Question
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Chapter 24, Problem 6PS

A

Summary Introduction

To calculate: The Geometric average and arithmetic average time-weighted rates of return for the investors.

Introduction: Weighted average return is related to the internal return rate. The IRR is defined as a discount rate at which the addition of all values will be zero.

B

Summary Introduction

To calculate: Return rate of dollar-weighted of the portfolio with the help of given information.

Introduction: Dollar weighted return rate is decided by the cash flow of each years. In first year three shares are purchased. Next year two are purchased but in 3rd year one is on sale and four are dividend. In final year five are in dividend and five are on sale.

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