(a) An investment manager had a fund of 100,000 at the start of the year. On February 1st the fund's value had dropped to 98,000 and a withdrawal of 10,000 was made. On September 1st, the fund balance was 100,000 and a new deposit of 10,000 was made. At year-end, the account balance was 105,000. Find the time-weighted and dollar-weighted rates of return. Leave your answers in 4 decimal places. Which rate of return is more appropriate for evaluating the performance of the investment manager? Explain your answer. [8] (b) Investments A and B have equal internal rates of return. Investment A requires an initial investment of 4,000 at t = 0. The return consists of payments of 500 at the end of each year for 9 years (at t = 1 through t = 9), plus a payment of 2,000 at t = 10. Investment B requires the investor to deposit 1,000 at t = 0. The return consists of 5 annual payments of amount X, the first payment occurring at t = 1. Determine the value of X to the nearest dollar. In your answers, write out the appropriate equations of values and solve accordingly. You will need to use software to work out the solution. In your answer, mention the software/function used. If using Goal Seek from Excel WPS, use a starting value of 0. You do not need to attach any screenshots of your working from software, but explain your thought process clearly. [6] (a) An investment manager had a fund of 100,000 at the start of the year. On February 1st the fund's value had dropped to 98,000 and a withdrawal of 10,000 was made. On September 1st, the fund balance was 100,000 and a new deposit of 10,000 was made. At year-end, the account balance was 105,000. Find the time-weighted and dollar-weighted rates of return. Leave your answers in 4 decimal places. Which rate of return is more appropriate for evaluating the performance of the investment manager? Explain your answer. [8] (b) Investments A and B have equal internal rates of return. Investment A requires an initial investment of 4,000 at t = 0. The return consists of payments of 500 at the end of each year for 9 years (at t = 1 through t = 9), plus a payment of 2,000 at t = 10. Investment B requires the investor to deposit 1,000 at t = 0. The return consists of 5 annual payments of amount X, the first payment occurring at t = 1. Determine the value of X to the nearest dollar. In your answers, write out the appropriate equations of values and solve accordingly. You will need to use software to work out the solution. In your answer, mention the software/function used. If using Goal Seek from Excel WPS, use a starting value of 0. You do not need to attach any screenshots of your working from software, but explain your thought process clearly. [6]