QUESTION 20 Carrie, after selling all of her shares of DD Company, decided to transact in a...

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Finance

QUESTION 20
Carrie, after selling all of her shares of DD Company, decidedto transact in a mutual fund in January 1, 2010. She listed thefund’s returns over a three-year period as shown below:
Year
1
2
3
New Investment at the Beginning of the Year
$5000
$1000
$500
Investment Return for the Year
–3%
10%
–2%
Withdrawal by the Investor at the End of the Year
$0
–$200
–$100
Based on these data, the money-weighted return for the investoris closest to:
a.
1.71%
b.
2.05%
c.
1.56%

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The formula for MoneyWeighted return isWhere MVT Ending See Answer

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QUESTION 20Carrie, after selling all of her shares of DD Company, decidedto transact in a mutual fund in January 1, 2010. She listed thefund’s returns over a three-year period as shown below:Year123New Investment at the Beginning of the Year$5000$1000$500Investment Return for the Year–3%10%–2%Withdrawal by the Investor at the End of the Year$0–$200–$100Based on these data, the money-weighted return for the investoris closest to:a.1.71%b.2.05%c.1.56%

	Year
	1	2	3
New Investment at the Beginning of the Year	$5000	$1000	$500
Investment Return for the Year	–3%	10%	–2%
Withdrawal by the Investor at the End of the Year	$0	–$200	–$100