Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This is actuarial science: Dollar-weighted and Time-weighted rate of returns An investment account has a value of $7000 on 1/1/2014. A deposit of X is

This is actuarial science: Dollar-weighted and Time-weighted rate of returns An investment account has a value of $7000 on 1/1/2014. A deposit of X is made on 5/1/2014, a withdrawal of $400 is made on 9/1/2014, and a deposit of $300 is made on 11/1/2014. The balance on December 31, 2014 is $8074. Find the amount of the first deposit if the dollar-weighted rate of return is 6% X=

An investment account has a value of $3000 on 1/1/2014. On 4/1/2014, the value of the account has increased to $3090 and a deposit of $700 is made. On 10/1/2014, the value of the account balance is $3968 and $800 is withdrawn. On 1/1/2015, the investment account is worth $3285. a) Compute the yield rate using the time-weighted method. iT= % b) Compute the yield rate using the dollar-weighted method. iD=

An investment account has a value of $300 on 1/1/2014. On 5/1/2014, the value of the account has increased to $305 and a deposit of $130 is made. On 10/1/2014, the value of the account balance is $444 and X is withdrawn. On 1/1/2015, the investment account is worth $362. Compute the amount of withdrawal if the time-weighted rate of return is equal to 6.12%. X=

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Curriculum Management Audit

Authors: Larry E. Frase, Fenwick W. English, William K. Poston

1st Edition

0810839318, 9780810839311

More Books

Students also viewed these Accounting questions