Question
Consider an investment account with a time horizon of 1 month. Suppose that the initial investment was 1000 and the value of this account was
Consider an investment account with a time horizon of 1 month. Suppose that the initial investment was 1000 and the value of this account was 1045 on day 5 of the month and 1060 on day 16 of the month. The accounts owner made two cash contributions during the month: 30 on day 5 and 20 on day 16. The value of the investment at the end of month was 1080.
a) calculate the rate of return for subperiod 1
b) calculate the rate of return for subperiod 2
c) calculate the rate of return for subperiod 3
d) calculate the time-weighted rate of return
e) calculate the money-weighted rate of return
f) calculate the annualized rate of return
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