An equity fund that invested $1 million in stocks earned 12% the first year, -15% (negative 15%) the second year, and 8% the third year. At the beginning of the second year, its stockholders sold/redeemed a net of $200,000 and at the beginning of the third year, its stockholders purchased a net of $500,000.

What is the dollar-weighted return on the investment?

Answer rating: 100% (QA)

To calculate the dollarweighted return on the investment we need to take into account the cash flows ... View the full answer