Question: Problem 1 (10 points) A. Joe is the fund manager. His fund begins with $10 million and has the following monthly returns: Month 1 2
Problem 1 (10 points) A. Joe is the fund manager. His fund begins with $10 million and has the following monthly returns: Month 1 2 3 Net inflows (5 million) 3 5 HPR (%) 2 0 8 Compute the arithmetic average monthly return. (2 points) B. Compute the time-weighted average monthly return. (3 points) C. Compute the dollar-weighted average monthly return. (5 points)
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