Chapter 2 section 6

# Chapter 2 section 6 - Zaki has a bank account balance of X...

This preview shows pages 1–2. Sign up to view the full content.

Chapter 2, Section 6 Use the following information about an investment fund for problems 17 – 19: Time Fund Value Before Contributions Contributions 0 10,000 0 1/4 8,000 -3,000 1⁄2 8,000 3,000 3⁄4 12,000 3,000 1 15,000 0 17. Calculate the exact annual dollar weighted return for the fund. 18. Estimate the annual dollar weighted return for the fund assuming simple interest. 19. Estimate the annual dollar weighted return for the fund assuming simple interest and all cash flows occurred in the middle of the year. 20.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Zaki has a bank account balance of X on January 1, 2000. During the next two years Zaki deposits 8000 into his account and withdraws 3000. On January 1, 2002, Zaki has a bank account balance of 28,400. Assuming that all cash flows occur on January 1, 2001, Zaki estimates his annual dollar weighted return assuming simple interest to be 4.5383664%. Calculate X. 21. Book Problem 2.6, Number 2. Answers: 17. 20.1352% 18. 20.0000% 19. 17.3913% 20. 21,200 21. – 2.6954%...
View Full Document

## This note was uploaded on 02/05/2012 for the course MA 373 taught by Professor Staff during the Spring '08 term at Purdue.

### Page1 / 2

Chapter 2 section 6 - Zaki has a bank account balance of X...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online