Question
What is the dollar-weighted return (IRR) for the following fund results? Assume initial fund is $2,000 and you withdraw all your account balance at the
What is the dollar-weighted return (IRR) for the following fund results? Assume initial fund is $2,000 and you withdraw all your account balance at the end of year 4. Each cash inflow occurs at the end of each period.
| year | returns | cash inflow |
| 1 | 0.115 | $4,000 |
| 2 | 0.07 | $3,000 |
| 3 | -0.09 | $3,000 |
| 4 | 0.045 | $0 |
| 2.24% | ||
| 4.48% | ||
| 3.36% | ||
| 1.12% |
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart
14th Edition
1264101597, 9781264101597
