Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(1 point) Problem 10 - Dollar-weighted and Time-weighted rate of returns You are given the following information about the activity in 2 different investment accounts:

image text in transcribedimage text in transcribed

(1 point) Problem 10 - Dollar-weighted and Time-weighted rate of returns You are given the following information about the activity in 2 different investment accounts: Account A Date Fund Value Before Activity Deposit Withdrawal January 1, 2014 300 September 1, 2014 365 November 1, 2014 345 December 31, 2014 365 2X Account B Date Fund Value Before Activity Deposit Withdrawal January 1, 2014 300 June 1, 2014 365 December 31, 2014 284.9 During 2014, the dollar-weighted return for investment account A equals the time-weighted return for investment account B, which is equal to i. Compute i (1 point) Problem 9 - Dollar-weighted and Time-weighted rate of returns For an investment account, you are given the following information during the first 6 months of the year. Date Fund Value Before Activity Deposit January 1 80 April 15 95 June 1 90 25 June 30 130 20 a) Use the time-weighted method to calculate the yield rate earned by this investment during the first 6 months. j = % b) Use your answer to part a) to compute the equivalent annual effective interest rate earned by this investment. i = %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Internal Auditing An Operational Approach

Authors: Victor Zinn Brink

3rd Edition

0471065242, 978-0471065241

More Books

Students also viewed these Accounting questions