John Began His Investing Program with a $5,500 Initial Investment

question 92

Multiple Choice

John began his investing program with a $5,500 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?
$\begin{array}{ccr}\text { Time } & \text { Investment } & \text { Return } \\0 & \$ 5,500 & 8.5\% \\1 & \$ 2,000 & -5.0\% \\2 & \$ 2,600 & 4.5\% \\3 & \$ 3,000 & 9.0\% \\4 & \$ 900 & -2.5\%\end{array}$

• A)1.5%
• B)1.8%
• C)2.0%
• D)2.2%
• E)2.6%

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Definitions:

Grade Point Average

A numerical calculation representing the average value of the accumulated final grades earned in courses over time, scaled usually from 0.0 to 4.0.

Coefficient Of Determination

A statistic used in the context of predictive models that provides a measure of how well observed outcomes are replicated by the model, based on the proportion of total variation of outcomes explained by the model.

Beaver Abundance

A measure or estimate of the number of beaver individuals or populations in a specified area.

Error Sum Of Squares

A measure in statistics that quantifies the discrepancy between the observed data and the values predicted by a model.