Question: Question 5 (1 point) Cash flows and fund values are given below. Subscripts denote the time of the cash flows or the value of the
Question 5 (1 point) Cash flows and fund values are given below. Subscripts denote the time of the cash flows or the value of the fund just before the cash flow. Fund values: Fo= 100 Fus= 150 F2.8 = 105 F4 = FT = 140 Cash flows: C15=-30 C2,8 = 20 The fund manager wishes to compare the dollar-weighted and time-weighted methods. The manager compares the two methods by using the same annualized return rate, but there will be an extra cash flow of X at time 3 under the dollar-weighted method only Calculate X a) 7.92 b) 15.97 c) -2.18 d) 10.24 e) 20.63
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