In: Finance
you manage a portfolio that receives dividends and makes payments in irregular intervals during the year. You begin on January 1 2020 with KES 10,000,000 in the portfolio. You invest it at a daily rate of 0.03%. On January 17, you receive a dividend of KES 500,000 on and on January 24, you make a payment of KES 250,000. Assume that the daily rate of 0.03% is constant throughout the month of January 2020.
Now answer the questions that follow
1) What is the ending value of the portfolio on January 31?
write to the nearest one e.g. 574203
2What is the geometric mean return for the month of January 2020? Write as a % to 2 d.p. e.g 10.92.
Don't include the % sign!
3)What is the value of the portfolio after 17 days? Answer to the nearest one
Answers are:
1)The ending value of portfolio on January 30 is 10345074
2)The geometric mean return for the month of January is .03.
3)The value of portfolio after 17 days is10551273
In the question it is stated that it begins on January 1 2020 with KES 10000000.
Daily invest rate is 0.03
On January 17 receive a divided of 500000 and on January 24 makes a payment of 250000.
After 24 Jan payout amt will be subtracted.
So previous day returnĂ— new day
(For more details it's in the Excel)