John Began His Investing Program with a $6,500 Initial Investment

question 19

Multiple Choice

John began his investing program with a $6,500 initial investment. The table below recaps his returns each year as well as the amounts he added to his investment account. What is his dollar-weighted average return?
$$\begin{array} { c c c } \text { Time } & \text { Investment } & \text { Return } \\0 & \$ 6,500 & 7.5\% \\1 & \$ 2,500 & - 4.0 \%\\2 & \$ 3,100 & 5.0\% \\3 & \$ 3,000 & 8.0\% \\4 & \$ \quad 800 & - 1.5\%\end{array}$$

• A)1.5%
• B)1.8%
• C)2.0%
• D)2.2%
• E)2.8%

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