A Portfolio Manager Has the Following Sequence of Cash Flows

question 34

Multiple Choice

A portfolio manager has the following sequence of cash flows over a two year period: $$\begin{array} { c c c c } \text { Time } & \begin{array} { c } \text { Market Value } \\\text { before cash flow }\end{array} & \text { Cash In } & \begin{array} { c } \text { Market Value } \\\text { after cash flow }\end{array} \\\hline 0 & \$ + 0 & \$ 3,000 & \$ 3,000 \\1 & \$ 3,200 & \$ 1,950 & \$ 5,150 \\2 & \$ 6,000 & - \$ 90 & \$ 5,910\end{array}$$ Calculate the portfolio manager's time weighted return.

• A)13.56%
• B)11.48%
• C)15.50%
• D)8.75%
• E)10.67%

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