A Portfolio Manager Has the Following Sequence of Cash Flows

question 7

Multiple Choice

A portfolio manager has the following sequence of cash flows over a two year period: $$\begin{array} { l c c c } \text { Time } & \mathbf { 0 } & \mathbf { 1 } & \mathbf { 2 } \\\hline \text { outflows } & - \$ 2,000 & - \$ 500 & \\\text { inflows } & & \$ 50 & \$ 3,090\end{array}$$ Calculate the portfolio manager's dollar weighted return.

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

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Definitions:

Conjunctivitis

An inflammation or infection of the outer membrane of the eyeball and the inner eyelid.

Blepharitis

An inflammation of the eyelids, typically involving the part where the eyelashes grow and resulting in red, irritated, itchy eyelids, and the formation of dandruff-like scales on the eyelashes.

Hyperopia

A common vision condition, also known as farsightedness, where distant objects are seen more clearly than near objects.

Glaucoma

A group of eye conditions that damage the optic nerve, often associated with abnormally high pressure in the eye, leading to vision loss.