Bill Has Been Adding Funds to His Investment Account Each

question 32

Multiple Choice

Bill has been adding funds to his investment account each year for the past 3 years.He started with an initial investment of $1,000.After earning a 10% return the first year,he added $3,000 to his portfolio.In this year his investments lost 5%.Undeterred,Bill added $2,000 the next year and earned a 2% return.Last year,discouraged by the recent results,he only added $500 to his portfolio,but in this final year his investments earned 8%.What was Bill's dollar-weighted average return for his investments?

• A)1.5 percent
• B)2.0 percent
• C)2.5 percent
• D)3.0 percent
• E)3.5 percent

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Definitions:

Psychodynamic Theories

Theories proposing that behavior is the result of internal psychological forces that often stem from childhood experiences.

Dynamic Interaction

The continuous and changing interplay between individuals or elements in a system or process.

Mental Processes

The internal, subjective mechanisms and activities through which individuals perceive, remember, think, and feel.

Psychodynamic Theories

A group of theories in psychology that primarily focus on unconscious processes and childhood experiences affecting personality and behavior.