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:

Bone Resorption

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