A Portfolio Manager Has the Following Sequence of Cash Flows

question 9

Multiple Choice

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

Mixed Masses

Compositions of varying substances or materials combined together, often without uniformity.

Downslope Marine

Describes processes or movements occurring towards the bottom of the ocean slope, often involving sediment transport from shallower to deeper waters.

Physical Weathering

The mechanical breakdown of rocks and minerals into smaller pieces by physical forces without changing their composition.

Oxidation

The chemical process during which a material combines with oxygen.