A Portfolio Manager Has the Following Sequence of Cash Flows

question 37

Multiple Choice

A portfolio manager has the following sequence of cash flows over a two-year period: Calculate the portfolio manager's dollar weighted return.

• A) 13.56 percent
• B) 11.48 percent
• C) 15.50 percent
• D) 8.75 percent
• E) 10.67 percent

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Definitions:

Shares of the Business

Equity units of a corporation that represent ownership interest held by shareholders, giving them a claim on the company's profits in the form of dividends.

Stock

A type of financial security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.