Suppose the rates of (realized) return were 100% in the 1st year, -50% in the 2nd year, 30% in the 3^rd year.

(i) If you had invested $1,000 at the beginning of 1st year, invested $2,000 at the beginning of the second year encouraged by the performance in the 1st year, and withdrawn $1,000 at the beginning of the 3rd year discouraged by the performance in the 2nd year, how much would you have had at the end of the 3rd year?

What would have been the annual rate of return on your invested money (i.e., the dollar-weighted average rate of return) over the three-year span? Please show your equation and calculation.

(ii) If you had invested $1,000 at the beginning of 1st year, invested $1,000 at the beginning of the second year, and invested $1,000 at the beginning of the 3rd year, how much would you have had at the end of the 3rd year?

What would have been the annual rate of return on your invested money (i.e., the dollar-weighted average rate of return) over the three-year span? Please show your equation and calculation.

(iii) Comparing (i) and (ii) above, which investment strategy between the two above (i.e., marketing timing vs. constant dollar amount) should you adopt going forward?