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Question 7 17 Marks Fund values for a certain unitised fund, along with new money flows, for the years 2014-2016 inclusive are given in the following table Fund Value New Money ($000s) Inflow ($000s) Date 1 January 2014 30 September 2014 100 90 +10 1 October 2014 31 December 2014 100 130 20 1 January 2015 1 May 2015 31 December 2015 110 130 180 +30 1 January 2016 31 December 2016 210 150 The fund value on 1 January 2014 was $100,000, made up of 1,000 units, each of value $100 As indicated in the table, new money flows into the fund were $10,000 at the end of September 2014, and $30,000 at the end of 2015; while a new money outflow of $20,000 took place at the end of 2014 There were no other new money flows for this fund during those three years (a) Calculate the number of units in the fund, and the value of each unit, on (i) 1 May 2015; and (ii) 31 December 2016 (5 marks) (b) Calculate (i) the TWRR over the three year period; and (ii) the LIRR over the three year period, taking the calendar years as the sub-intervals (6 marks) (i) Write down an equation satsified by the MWRR over the three years (ii) The MWRR over the three years is 8.8% pa. effective (you do NOT need (c) to verify this) In light of your answer to (b), comment on the values of these three re- turns (6 marks)

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