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Please solve using the formula mentioned, and on a paper. Thank you 12-8 At time you place 100 into a fund. In the first year,
Please solve using the formula mentioned, and on a paper.
Thank you
12-8 At time you place 100 into a fund. In the first year, the fund earns a 50% return. At time 1, you add X to the account. In year 2, the fund earns a 10% return. (a) Calculate the dollar-weighted interest rate when X = 100. (b) Calculate the dollar-weighted interest rate when X = 400. (c) Calculate the time-weighted interest rate when X = 100 and when X = 400. (d) Which of the two is a better measure for the fund manager's performance over the two years? = 12-8 At time you place 100 into a fund. In the first year, the fund earns a 50% return. At time 1, you add X to the account. In year 2, the fund earns a 10% return. (a) Calculate the dollar-weighted interest rate when X = 100. (b) Calculate the dollar-weighted interest rate when X = 400. (c) Calculate the time-weighted interest rate when X = 100 and when X = 400. (d) Which of the two is a better measure for the fund manager's performance over the two years? =Step by Step Solution
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