Calculate the dollar weighted rate of return

Assignment Help Financial Management
Reference no: EM131497065

Your grandmother gave you $200 for your birthday, which you invested in a mutual fund on January 1, 2012. On June 1, 2012, she gave you $610 for your high school graduation, which you immediately deposited into your mutual fund. On January 1, 2013, found that your dollar-weighted rate of return for the previous year was 6.2%. On April 1, 2013 your fund balance was $1500, and you then deposited $X, which your grandmother gave you for college. On January 1, 2014, your fund balance was $2300, and you calculated that your time weighted rate of return for the previous year was 10.3%. What is X? Note: Assume months of equal length, and assume that simple interest is used to calculate the dollar weighted rate of return.

Reference no: EM131497065

Questions Cloud

What is corporate-level strategy and its purpose : What is Corporate-level strategy and its purpose? What do you think are ATT’s reasons for diversification? (Why)
Calculate the investors before-tax IRR and lenders IRR : Calculate the investor’s before-tax IRR. Calculate the lender’s IRR if the property instead sells for only $1 million after 10 years.
Dollar-weighted and time-weighted yield rates : If the dollar-weighted and time-weighted yield rates were the same, what is the rate of return?
Different decisions regarding its capital structure : What might be different about RadioShack’s unhappy ending if it would have made different decisions regarding its capital structure?
Calculate the dollar weighted rate of return : Assume months of equal length, and assume that simple interest is used to calculate the dollar weighted rate of return.
What is the companys net income : What is the companys net income
One of the ways to evaluate company performance : One of the ways to evaluate a company’s performance is to compare it to benchmark (peer) companies.
Transaction exposure and economic exposure : XYZ corporation has a British supplier and an Argentinian buyer. Transaction exposure-Economic exposure
What will be your minimum selling price for the bond : If your desired nominal yield is 4% per year compounded semiannually, what will be your minimum selling price for the bond?

Reviews

Write a Review

Financial Management Questions & Answers

  Who are managing other peoples money

Discuss this statement in the context of those who are managing their own money and those who are managing other people’s money.

  What will the firm price earnings ratio be

A company needs $35,943,750 to finance a major project in the company. The company expects that next year’s earnings from current operations and the additional earnings from the new project will be a total of $45,650,000. If the $35,943,750 needed fo..

  How would the estimate of the daily volatility be updated

The parameter λ in the EWMA model is 0.9. Suppose that the exchange rate at 4 p.m. today proves to be 1.4950.  - How would the estimate of the daily volatility be updated?

  What is the annual percentage rate

A bank is charging you an annual interest rate that is compounded monthly. If the effective interest rate you are paying is 6.17 percent, what is the annual percentage rate(APR)

  Mutual fund and what is the expected return

Assume that you manage a mutual fund with an expected rate of return of 18% and a standard deviation of 34%. The T-bill rate is 5.5%. An investor wants to invest in your fund and T-bills such that the standard deviation of the investor’s total portfo..

  Corporation consider when deciding on next management team

Morgan Corporation is at a crossroad in its 50 year existence. All 9 of the people who started the company and are on the Board of Directors, are in their 70's. The next five (5) years are crucial - either it will advance Into a new phase or die or. ..

  Create scenarios for each financing alternative

create scenarios for each financing alternative and prepare reports that Granite City Books bank ad management can use to compare the various financing alternatives. Complete the following.

  Included in computing earnings before taxes

Which of the following is not included in computing EBT (earnings before taxes)?

  What is futons abnormal rate of return

Analysis of 60 monthly rates of return on United Futon common stock indicates a beta of 1.58 and an alpha of –0.33% per month. A month later, the market is up by 6.3%, and United Futon is up by 7.3%. What is Futon’s abnormal rate of return?

  Classify the voluntary settlements as an extension

For a firm with outstanding debt of $125,000, classify each of the voluntary settlements as an extension, a composition, or a combination of the two.

  Please indicate whether it is true or false and why

Given the following statement, please indicate whether it is true or false, and why: "Managerial finance is concerned with design and delivery of advice and financial products to individuals, business, and government."

  Strike european call option

You purchase one 35-strike European call option on QRS stock, and you sell one 80- strike European call option on QRS stock. Both options have the same expiration date. Find the payoff (or value) of your option portfolio for each of the following two..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd