2012 : (450-90 90*4 + 4*4) = 380 360 + 4*4: 36 Return : 2010 = 421300 = 14% 2011 = 301550 = 44.54595 2012: 6.3360 = 10% a. What are the arithmetic and geometric average time-weighted rates of return for the investor? arithmetic avg = (14% 14.54594; +10%)13 = 3.15% geometric avg = 1+[(1+0.14)*(10.145451*(1+0.1)141113) = 2.33% b. What is the dollar-weighted rate of return? (Hint: Carefully prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2010, to January 1, 2013. If your calculator cannot calculate internal rate of return, you will have to use a spreadsheet or trial and error.) 2010 : -300 2011 : (-'110*2 + 12 div) = 208 2012: (90+ 5*4 div): 110 2013: (95*4+4*4 div): 396 IR compute = 0.17% For Problems 1216, assume that you manage a risky portfolio with an expected rate of return of 12% and a standard deviation of 27%. The T-bill rate is 7%