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A fund held by an investment manager had a value of RM2 million on 1 January 2019. RM2.5 million was invested on 1 May 2019.

A fund held by an investment manager had a value of RM2 million on 1 January 2019. RM2.5 million was invested on 1 May 2019. Immediately after this investment, the value of the fund was RM2.1 million. At the close of business on 31 December 2019, the value of the fund was 4.2 million.

(i) Calculate the time-weighted rate of return for 2019.

(ii) Calculate the dollar-weighted rate of return for 2019.

(iii) Comment on your answers to part (i) and (ii).


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