Determine barneys investment return

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Reference no: EM133926919

Problem

Fred's friend Barney, believes that by being able to time the market, an investor will generate better returns on their portfolio. Barney invested R1 million into the Old Mutual Balanced Fund unit trust on 1 July 2020. On 15 January 2021, his portfolio is valued at R1,162,484. At that point (15 January 2021), he added an additional R100,000 to his unit trust investment, bringing the total value to R1,262,484. Get the instant assignment help. By 31 December 2021, the portfolio has decreased in value to R1,192,328. Determine Barney's investment return using a time-weighted rate of return. Explain to Fred the difference between time weighted rate of return and holding period rate of return.

Reference no: EM133926919

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