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A fund is established on 7/1/2017 with a $100 million initial investment. On 12/31/2017 the fund...

A fund is established on 7/1/2017 with a $100 million initial investment. On 12/31/2017 the fund has grown to $120 million due to capital gains. An additional $100 million is invested on 1/1/2018, bringing the fund to $220 million. No cash inflows or outflows occur in 2018, and on 12/31/18 the fund has grown to $231 million due to capital gains and reinvested dividends. On 1/1/2019, $81 million is withdrawn from the fund, leaving a balance of $150 million. On 7/1/2019, the fund is closed put with a value of $168 million distributed to investors.

a. Calculate the time-weighted rate of return for the fund.

b. Calculate the money-weighted rate of return for the fund.

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jeff jeffy answered 1 year ago
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Date Close 7/3/2017 898.700012 7/5/2017 911.710022 7/6/2017 906.690002 7/7/2017 918.590027 7/10/2017 928.799988 7/11/2017 930.090027 7/12/2017 943.830017...
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