(a) Given the following account summary: (i) Compute the time-weighted rate of return. [3] (ii) Compute the dollar-weighted rate of return. Assume that each month is 121 of a year. [3] (iii) Assume that March 1 is changed to May 1 and September 1 is changed to October 1, while the fund values and cash flows remain the same. Would the rate of return change when computed by the time-weighted method? Explain your answer. [2] (b) An investor is asked to invest 1,000 and is promised in return a payment of 250 in one year, and 750 at the end of the second year. Use the quadratic formula to compute the internal rate of return(s) for this investment. Which rate(s) would be valid? Justify your answer. [7]