You open an account where you deposit $500 today. Further, you deposit $800 at the beginning...
You open an account where you deposit $500 today. Further, you deposit $800 at the beginning of next year, withdraw $250 at the beginning of year two and deposit $450 at the beginning of year 3. The return for year 1 is 6%, for year 2 it is -8%, for year 3 it is 4.5% and for year 4 it is -2%. What is your dollar-weighted or money-weighted return (in percent) for the four-year period? Answer to two decimals.
| a. | -1.45 |
| b. | -6.95 |
| c. | -11.92 |
Homework Answers
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ANSWER : a : -1.45%
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