Tom Decides to Begin Investing Some Portion of His Annual

question 68

Multiple Choice

Tom decides to begin investing some portion of his annual bonus, beginning this year with $5,000. In the first year he earns a 10% return and adds $3,500 to his investment. In the second his portfolio loses 5% but, sticking to his plan, he adds $500 to his portfolio. In this year his portfolio returns 2%. What is Tom's dollar-weighted average return on his investments?

• A) 0.34 percent
• B) 1.02 percent
• C) 1.54 percent
• D) 2.23 percent
• E) 2.58 percent

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Definitions:

Maintenance Activities

Tasks undertaken to keep equipment or facilities in good working condition and to prevent breakdowns.

Shop-Floor Control

A system used to manage, control, and track the process and production flow on the manufacturing shop floor.

Normal Probability Distribution

The normal probability distribution, also known as the Gaussian distribution, is a symmetrical bell-shaped distribution where most observations cluster around the central peak.

Arrival Rates

The frequency at which entities (like customers, goods, or information) arrive at a point of service or processing, impacting resource allocation and system capacity.