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Over a 10-year period, a fund with initial value FO=1 generated effective annual yields 12% for years 1-4, 9% for years 5-7, and 15% for
Over a 10-year period, a fund with initial value FO=1 generated effective annual yields
12% for years 1-4, 9% for years 5-7, and 15% for years 8 - 10.
During this period, the fund received
contributions of (0.3, 0.5, 0.2) at times (2,
5, 8) (the ends of years 2, 5, 8) and withdrawals of (0.2, 0.4) at times (5, 7) respectively. Calculate the following rates of the fund over the 10-year period:
(a) LIRR: the linked internal rate of return. (b) MWRR: the money weighted rate of
return (use Excel Solver). (c) TWRR: the time weighted rate of return.
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