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:

Cerebrum

A large, convoluted subdivision of the vertebrate brain; in humans, it functions as the center for learning, voluntary movement, and interpretation of sensation.

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An order of mammals including humans, apes, monkeys, and prosimians, characterized by large brains, forward-facing eyes, and complex social behaviors.

Complex Curvature

A characteristic of a geometrical shape or object that has multiple curves or bends, often relating to advanced mathematics or physical shapes in architecture and design.

Spine

A leaf that is modified for protection, such as a cactus spine.