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Problem 9 - Dollar-weighted and Time-weighted rate of returns For an investment account, you are given the following information during the first 6 months of
Problem 9 - Dollar-weighted and Time-weighted rate of returns For an investment account, you are given the following information during the first 6 months of the year.
Date | Fund Value Before Activity | Deposit |
January 1 | 60 | |
March 15 | 85 | 20 |
June 1 | 75 | 25 |
June 30 | 109 |
a) Use the time-weighted method to calculate the yield rate earned by this investment during the first 6 months. j= % b) Use your answer to part a) to compute the equivalent annual effective interest rate earned by this investment. i= %
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