A pension fund has a value of 1,000,000 on January 1, 1999.

Withdrawals of 10,000 are made from the fund on March 31, 1999, October 31, 1999, and April 30, 2000. Immediately after these withdrawals the fund has balances of 1,035,000, 1,085,000 and 1,120,000. On December 31, 2000, the value of the fund is 1,200,000.

(a) Find (if possible) the dollar-weighted rate of investment return for the two-year period from January 1, 1999 to December 31, 2000.

(b) Find (if possible) the time-weighted rate of return for the same period.

(c) Find (if possible) the effective annual rate corresponding to the rate calculated in part (a).

(d) Repeat (if possible) parts

(a) and

(b) for the year 1999 only.