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Please solve it like the example below Assume an investor deposits $112,000 in a professionally managed account. One year later, the account has grown in
Please solve it like the example below
Assume an investor deposits $112,000 in a professionally managed account. One year later, the account has grown in value to $148,000 and the investor withdraws $59,000. At the end of the second year, the account value is $88,000. No other additions or withdrawals were made. Calculate dollar-weighted return of portfolio over two years. (You need to calculate IRR of cash flows over two years.) Round the answer to two decimals in percentage form. Please write % sign in the units box. Your Answer: Assume an investor deposits $116,000 in a professionally managed account. One year later, the account has grown in value to $136,000 and the investor withdraws $43,000. At the end of the second year, the account value is $107,000. No other additions or withdrawals were made. During the same two years, the risk-free rate remained constant at 3.94 percent and a relevant benchmark earned 9.58 percent the first year and 6.00 percent the second. Calculate geometric average of holding period returns over two years. (You need to calculate IRR of cash flows over two years.) Round the answer to two decimals in percentage form. Please write % sign in the units box. Your Answer: Cash Flow at time point zero: Cash Flow at time point 1: Cash Flow at time point 2: =IRR(A1:A3,10%) = 16.35% -$116,000 (entered in cell A1) $43,000 (entered in cell A2) $107,000 (entered in cell A3)
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