Below are the actual returns of the TSX 300 composite index as provided by Yahoo Finance....

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Below are the actual returns of the TSX 300 composite index as provided by Yahoo Finance. (All rates in this question are expressed in annual compunding.) Year 2003 2004 Return 29.70% 8.00% 2005 29.80% 2006 9.10% 2007 0.90% 2008 -33.90% 2009 27.60% 2010 22.20% 2011 -8.10% 2012 1.90% 2013 8.00% As you can see, the past decade saw quite a bit of volatility. Assume at the start of each year, you invested $1,000 into the stock market, and your returns were identical to that of the overall TSX 300 market index. (a) Compute your final accumulated value (at the end of 2013). (b) Compute the dollar-weighted rate of interest. (c) Compute the time-weighted rate of interest. (HINT: You may find it convenient to use Excel for this question.) Below are the actual returns of the TSX 300 composite index as provided by Yahoo Finance. (All rates in this question are expressed in annual compunding.) Year 2003 2004 Return 29.70% 8.00% 2005 29.80% 2006 9.10% 2007 0.90% 2008 -33.90% 2009 27.60% 2010 22.20% 2011 -8.10% 2012 1.90% 2013 8.00% As you can see, the past decade saw quite a bit of volatility. Assume at the start of each year, you invested $1,000 into the stock market, and your returns were identical to that of the overall TSX 300 market index. (a) Compute your final accumulated value (at the end of 2013). (b) Compute the dollar-weighted rate of interest. (c) Compute the time-weighted rate of interest. (HINT: You may find it convenient to use Excel for this question.)

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