Jim Began His Investing Program with a $4,000 Initial Investment

question 65

Multiple Choice

Jim began his investing program with a $4,000 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?
$$\begin{array} { c l c } \text { Time } & \text { Investment } & \text { Return } \\0 & \$ 4,000 & 10\%\\1 & \$ 2,800 & -5\% \\2 & \$900 &2\% \\3 & \$ 1,600&8\% \\4 & \$ 2,100 &-3\% \\5 & \$ 2,400 &6\%\end{array}$$

• A)1.6%
• B)2.2%
• C)2.6%
• D)3.2%
• E)3.6%

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Definitions:

Axiomic View

A perspective built on accepted principles or statements taken to be self-evident truths.

Strategic View

An approach focusing on long-term objectives, positioning, and plans to achieve sustainable competitive advantage.

Bargaining Position

The relative power or leverage that a person or entity holds in negotiation settings, affecting their ability to secure favorable terms.

Nonunion Scabs

Workers who are not members of a labor union and are employed to work during a strike, typically regarded negatively by union members.