An investment fund has a balance of 100 at the beginning of the year (i.e. t...
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An investment fund has a balance of 100 at the beginning of the year (i.e. t = 0) and a balance of 145 at the end of the year (i.e. t = 1). A contribution of size K is made at time t = 1/3. The balance just prior to this contribution is 4K. Find K so that the annual dollar weighted rate of return is equal to the annual time weighted rate of return. Give your answer as a decimal rounded to two places Note: Contributions would be positive values. Answer: An investment fund has a balance of 100 at the beginning of the year (i.e. t = 0) and a balance of 145 at the end of the year (i.e. t = 1). A contribution of size K is made at time t = 1/3. The balance just prior to this contribution is 4K. Find K so that the annual dollar weighted rate of return is equal to the annual time weighted rate of return. Give your answer as a decimal rounded to two places Note: Contributions would be positive values. Answer:
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Heres how to find K 1 Define the formulas DollarWeighted Return DWR DWR Ending Balance Beginning Bal... View the full answer
Related Book For
International Financial Reporting and Analysis
ISBN: 978-1408075012
5th edition
Authors: David Alexander, Anne Britton, Ann Jorissen
Posted Date:
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