You open an account where you deposit $500 today. Further, you deposit $800 at the beginning of next year, withdraw $250 at the beginning of year two and deposit $450 at the beginning of year 3. The return for year 1 is 6%, for year 2 it is -8%, for year 3 it is 4.5% and for year 4 it is -2%. What is your dollar-weighted or money-weighted return (in percent) for the four-year period? Answer to two decimals. -1.45 -6.95 -11.92

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...
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You open an account where you deposit $500 today. Further, you deposit $800 at the
beginning of next year, withdraw $250 at the beginning of year two and deposit $450 at the
beginning of year 3. The return for year 1 is 6%, for year 2 it is -8%, for year 3 it is 4.5% and
for year 4 it is -2%. What is your dollar-weighted or money-weighted return (in percent) for
the four-year period? Answer to two decimals.
O -1.45
-6.95
-11.92
Transcribed Image Text:You open an account where you deposit $500 today. Further, you deposit $800 at the beginning of next year, withdraw $250 at the beginning of year two and deposit $450 at the beginning of year 3. The return for year 1 is 6%, for year 2 it is -8%, for year 3 it is 4.5% and for year 4 it is -2%. What is your dollar-weighted or money-weighted return (in percent) for the four-year period? Answer to two decimals. O -1.45 -6.95 -11.92
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