Compute dollar-weighted rate of


An investment fund has a balance of $10,000 on Jan 1, 2005. On June 1, 2005, the balance is $11,000. Immediately after this balance is calculated on June 1, $5,000 is added to the fund. The time weighted rate of return on this fund is 15% per annum.

a) Find the fund balance on Dec 31, 2005. b) Compute dollar-weighted rate of return.

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Financial Management: Compute dollar-weighted rate of
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