MA373 S13 Homework Chapter 2

During the next two years zaki deposits 8000 into his

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Unformatted text preview: 8000 into his account and withdraws 3000. On January 1, 2012, Zaki has a bank account balance of 28,400. Assuming that all cash flows occur on January 1, 2011, Zaki estimates his annual dollar weighted return assuming simple interest to be 4.5383664%. Calculate X. 22. Book Problem 2.6, Number 2. Chapter 2, Section 7 23. Sheila invests 1000 in a fund. One year later her investment is worth 800. At that time, Sheila invests an additional 500 into the fund. Two years after her initial investment of 1000, her fund is worth 2000. Calculate Sheila’s time weighted yield ( jTW ) over the two year period as well as her annualized time weighted yield ( iTW ). 24. You are given the following information for a fund: Time 0 ½ 1 1½ 2 Fund Value Before Contributions 20,000 21,000 24,000 30,000 29,000 Contributions 0 5000 4000 -3000 0 Calculate the annual time weighted yield for this fund. 25. Book Problem 2.7, Number 3 26. Antong invests in the Mullen Mutual Fund. Over the next two years, Antong realizes...
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This note was uploaded on 10/10/2013 for the course MA 373 taught by Professor Staff during the Fall '08 term at Purdue.

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