Question
You are given the following information about a portfolio: Value as of 1/1/2107 - 100 Value as of 6/30/2017 - 110 Contribution at 7/1/2017 -
You are given the following information about a portfolio:
Value as of 1/1/2107 - 100
Value as of 6/30/2017 - 110
Contribution at 7/1/2017 - 50
Value at 7/1/2017 after the contribution - 160
Value as of 12/31/2017 - 150
There were no withdrawals, and the only cash inflow was the contribution made 7/1/2017. With respect to this portfolio, which of the following are true for the time period from 1/1/2017 to 12/31/2017?
1. The time-weighted rate of return is zero.
2. The dollar-weighted rate of return is zero.
3. The internal rate of return is zero.
A. 1,2
B. 1,3
C. 2,3
D. 1,2,3
E. None of these is the correct answer.
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