A Portfolio Manager Has the Following Sequence of Cash Flows

question 65

Multiple Choice

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

Continuous Reinforcement

A strategy in which a desired behavior is reinforced every time it occurs, leading to quick learning of the behavior.

Behavior Modification

A psychological strategy for altering undesirable behaviors through reinforcement, punishment, and other interventions.

Occasional Praise

The act of expressing approval or admiration infrequently or at irregular intervals, often used as a motivational tool in personal and professional contexts.

Mentor Relationships

The dynamic between a more experienced individual (mentor) and a less experienced individual (mentee), geared towards the latter's personal and professional development.