Question: Explain whats the difference between dollar weighted return and geometric return. Assume you invested $100 today, invested additional $20 at the end of year 3,
- Explain whats the difference between dollar weighted return and geometric return. Assume you invested $100 today, invested additional $20 at the end of year 3, withdraw $50 at the end of year 4. At the end of year 5, you have $20 left in your account. What is your dollar weighted return (IRR)? Show your calculate steps using either financial calculator or Excel sheet.
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