Activity 1 At the beginning of the month, XY Smith owned a portfolio valued at $6000. On the 15th day, the portfolio was worth $8000 after a $2000 contribution has been made on that day. At the end of the month, the portfolio was worth $9800. Calculate (i) the time weighted return for the month and; (ii) the dollar weighted return.
Activity 1 At the beginning of the month, XY Smith owned a portfolio valued at $6000. On the 15th day, the portfolio was worth $8000 after a $2000 contribution has been made on that day. At the end of the month, the portfolio was worth $9800. Calculate (i) the time weighted return for the month and; (ii) the dollar weighted return.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Activity 1
At the beginning of the month, XY Smith owned a portfolio valued at $6000. On
the 15th day, the portfolio was worth $8000 after a $2000 contribution has been
made on that day. At the end of the month, the portfolio was worth $9800.
Calculate (i) the time weighted return for the month and;
(ii) the dollar weighted return.
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