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(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:
(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 = %
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