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Question 5 (1 point) Cash flows and fund values are given below. Subscripts denote the time of the cash flows or the value of the
Question 5 (1 point) Cash flows and fund values are given below. Subscripts denote the time of the cash flows or the value of the fund just before the cash flow. F4 = FT = 140 Fund values: Fo = 100 F1.5 = 150 Cash flows: C1.5=-30 F2.8 = 105 C2.8 = 20 The fund manager wishes to compare the dollar-weighted and time-weighted methods. The manager compares the two methods by using the same annualized return rate, but there will be an extra cash flow of X at time 3 under the dollar-weighted method only. Calculate X. a) -2.18 b) 15.97 c) - 10.24 d) 7.92 e) -20.63 Question 5 (1 point) Cash flows and fund values are given below. Subscripts denote the time of the cash flows or the value of the fund just before the cash flow. F4 = FT = 140 Fund values: Fo = 100 F1.5 = 150 Cash flows: C1.5=-30 F2.8 = 105 C2.8 = 20 The fund manager wishes to compare the dollar-weighted and time-weighted methods. The manager compares the two methods by using the same annualized return rate, but there will be an extra cash flow of X at time 3 under the dollar-weighted method only. Calculate X. a) -2.18 b) 15.97 c) - 10.24 d) 7.92 e) -20.63
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