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The initial investment was $1,000 (01Jan). After 6 months(30June), the position's value was $1,100 right before a cash inflow (additional investment) of $200 (01 July).
The initial investment was $1,000 (01Jan). After 6 months(30June), the position's value was $1,100 right before a cash inflow (additional investment) of $200 (01 July). At year-end(31Dec), the total value of the position was $1,300. What was the 1-year dollar-weighted rate of return (annual rate) on this investment for the 1-year period? (1) 3%; (2) 4%; (3) 5%; (4) 6%; (5) 9%; (6) 12%; (7) 24%; (8) 42%; (9) 55%; (10) 105%; [p.a.; Choose the nearest.]
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