Question 3 (20 marks) (a) On Janaury 1, an investment account is worth $100,000. On May 1 the value has increased to $112,000, and $30,000 of new principal is deposited. On November 1, the value has declined to $125,000 and $42,000 is withdrawn. On January 1 of the following year the investment account is again worth $100,000. (i) Compute the time-weighted rate of return (TWRR) and dollar-weighted rate of return (DWRR). [4] (ii) Assume that May 1 is changed to June 1 and November 1 is changed to October 1, while the fund values and cash flows remain the same. Would the rate of return change when computed by the dollar-weighted method? Would the rate of return change when computed by the time-weighted method? Explain your answers. [3]