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Consider the following investment: Two years ago, you bought stocks for EUR 1 5 , 0 0 0 . One year ago, the value of
Consider the following investment:
Two years ago, you bought stocks for EUR
One year ago, the value of your portfolio was EUR Then you invested EUR
more into the stocks of the same company.
Today, the value of your portfolio is EUR
Compute the
a geometric return time weighted return"
b internal rate of return yield "dollar weighted return"
c Which one would you prefer in general if you worked as a fund manager for a client putting randomly money in and out of the fund
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