Question
You are operating a mutual fund which today has $100mil in assets. Your returns and fund flows into/out of the fund are listed below. Time
You are operating a mutual fund which today has $100mil in assets. Your returns and fund flows into/out of the fund are listed below.
| Time = | Return | Fund Flow $Mil |
| 1 | 20.00% | 5 |
| 2 | 10.00% | 3 |
| 3 | -30.00% | -10 |
| 4 | 10.00% | 4 |
| 5 | -5.00% | -2 |
Question 1: What is the arithmetic average (mean) of the returns?
Question 2: What is the geometric average (mean) of the returns?
Question 3: What is the dollar-weighted average (mean) of the returns?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Melissa Hart
7th Edition
1265521972, 978-1265521974
