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Assume an investor deposits S117, 000 in a professionally managed account. One year later, the account has grown in value to $132,000 and the investor withdraws S 40, 000. At the end of the second year, the account value is $92,000. No other additions or withdrawals were made. Calculate dollar-weighted return of portfolio over two years. (You need to calculate IRR of cash flows over two years. Round the answer to two decimals in percentage form. Please write % sign in the units box. Answer = 7.40%

Assume an investor deposits S117, 000 in a professionally managed account. One year later, the account has grown in value to $132,000 and the investor withdraws S 40, 000. At the end of the second year, the account value is $92,000. No other additions or withdrawals were made. Calculate dollar-weighted return of portfolio over two years. (You need to calculate IRR of cash flows over two years. Round the answer to two decimals in percentage form. Please write % sign in the units box. Answer = 7.40%

Essentials Of Investments
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
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Assume an investor deposits S117, 000 in a professionally managed account. One year later, the account has grown in value to $132,000 and the investor withdraws S 40, 000. At the end of the second year, the account value is $92,000. No other additions or withdrawals were made. Calculate dollar-weighted return of portfolio over two years. (You need to calculate IRR of cash flows over two years. Round the answer to two decimals in percentage form. Please write % sign in the units box. Answer

= 7.40%

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