B. A fund had 50 million of initial funds at the beginning of 2020. Investors can...

 

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B. A fund had £50 million of initial funds at the beginning of 2020. Investors can invest in or withdraw their money out of the fund during the year. The detailed cash flows are given below. Time Time 0 0.25 year 0.50 year Market Value £50 M £60 M £50 M £60 M £100 M Cash flow in £20 M £40 M £50 M Cash flow out -£15 M -£30 M 0 0.75 year End of year 1) Calculate the time weighted rate of return (TWRR) of the fund. (20 marks) II) Describe the concept of money weighted rate of return (MWRR). (15 marks) B. A fund had £50 million of initial funds at the beginning of 2020. Investors can invest in or withdraw their money out of the fund during the year. The detailed cash flows are given below. Time Time 0 0.25 year 0.50 year Market Value £50 M £60 M £50 M £60 M £100 M Cash flow in £20 M £40 M £50 M Cash flow out -£15 M -£30 M 0 0.75 year End of year 1) Calculate the time weighted rate of return (TWRR) of the fund. (20 marks) II) Describe the concept of money weighted rate of return (MWRR). (15 marks)

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