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NO EXCEL Problem 7. The fund balance in an account on January 1 is 1000. On April 1, the value has increased to 1010 and
NO EXCEL
Problem 7. The fund balance in an account on January 1 is 1000. On April 1, the value has increased to 1010 and 10 is withdrawn. Then the balance on June 30 is 1030 and the balance on December 31 becomes 1050. (Show all your answers in the form of xx.xx%.) a Calculate the dollar-weighted yield rate and the time-weighted yield rate. b If there was a deposit of 10 immediately after June 30 balance was calculated, calculate the dollar-weighted yield rate and the time-weighted yield rate. c Redo [b] if the deposit was immediately before the June 30 balance was cal- culated. d Verbally explain what you find from dollar-weighted yield rates from [b] and [c] and interpret it. Problem 7. The fund balance in an account on January 1 is 1000. On April 1, the value has increased to 1010 and 10 is withdrawn. Then the balance on June 30 is 1030 and the balance on December 31 becomes 1050. (Show all your answers in the form of xx.xx%.) a Calculate the dollar-weighted yield rate and the time-weighted yield rate. b If there was a deposit of 10 immediately after June 30 balance was calculated, calculate the dollar-weighted yield rate and the time-weighted yield rate. c Redo [b] if the deposit was immediately before the June 30 balance was cal- culated. d Verbally explain what you find from dollar-weighted yield rates from [b] and [c] and interpret itStep by Step Solution
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