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I need full explanation of these questions, I have provided the answer and the sections from the book to use it as reference. The two

I need full explanation of these questions, I have provided the answer and the sections from the book to use it as reference. The two equations (2.6.5) and (2.6.8) are in file section 2.6.

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(2.6) Approximate dollar-weighted yield rates (1) Sandra invests $10,832 in the Wise Investment Fund. Three months later her balance has grown to $11,902 and she deposits $2,000. Two months later her fund holdings are $14,308 and she withdraws $7,000. Two years after her ini- tial investment, she learns that her holdings are worth $12,566. (a) Write an equation of value involving the exact dollar-weighted annual yield i over the two-year period. (b) Compute the approximate dollar-weighted annual yield over the invest- ment period using (2.6.5) and again using (2.6.8). (2) On February 1, Arshak's investment account has a balance of $19,800. He deposited $1,200 on April 1 and $2,600 on May I. He withdrew $8,400 on July I. On November 1, Arshak's balance was $14,820. Find Arshak's approximate dollar-weighted annual yield for this nine-month period using (2.6.5). (4) The investment balance of a rm is $5,000,000 at the beginning of a two-year period and $7,000,000 at the end. The rm makes a single contribution during the two-year interval of $1,200,000. What is the difference between the ap- proximate annual dollar-weighted yield earned by the rm if the contribution is made after 6 months as opposed to it being made after one year? Answer for 01 a} $1 ,832+$2,t}0t}[1+i}"[-3112}-$?,DDD(1+i}"[-5i12]= $12,56511+i}\"-2 b} using equation {2.6.5} = .398?4539, using equation [2.5.8] = D.344695?3T Answer for 1112 4.5954491: Answer for 04 the annual dollar-weighted yield is 5.564112% or 5.911450%, depending upon whether the payment is after six months or one year; the difference is 0.154025%

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