Question: please explain it in details + what formula you use, thank you 4. Suppose that an investor makes a series of payments and withdrawals, as

please explain it in details + what formula you use, thank youplease explain it in details + what formula you use, thank you

4. Suppose that an investor makes a series of payments and withdrawals, as follows: Date Flow Balance Before Balance After 01/01/2003 0 100.000 100.000 30/06/2003 +1.000.000 74.681 1.074.681 31/12/2003 0 1.474.081 1.474.081 Compute the dollar-weighted rate of interest that the investor has realized. Compute the time-weigted rate of interest. Solution: 62,35% 6 2,44% 4. Suppose that an investor makes a series of payments and withdrawals, as follows: Date Flow Balance Before Balance After 01/01/2003 0 100.000 100.000 30/06/2003 +1.000.000 74.681 1.074.681 31/12/2003 0 1.474.081 1.474.081 Compute the dollar-weighted rate of interest that the investor has realized. Compute the time-weigted rate of interest. Solution: 62,35% 6 2,44%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!