Calculate the annualised Time Weighted Rate of Return

Assignment Help Accounting Basics
Reference no: EM133036897

Question - You are a fixed term interest rate portfolio manager and have been advised that cash inflows for the fund are expected to be, $15 million now; a further $25 million is to be added to the initial investment in one years' time, followed by a further $10 million at the beginning of the next year. These investments are made annually at the beginning of each successive year. The market is expected to provide annual returns of 7.5%, 1.5%, 5.5%% for each successive year.

A. Calculate the annualised Time Weighted Rate of Return (TWRR) and the Money Weighted Rate of Return (MWRR) provided over the three-year term?

B. What do these calculations tell you about the timing of the investment decisions?

Reference no: EM133036897

Questions Cloud

Legal environmental of busn question : The Instituto de Auxilios y Viviendas is a government agency of the Dominican Republic. Dr. Marion Fernandez, the general administrator of the Instituto and Sec
Compute the monthly increase in operating income : Compute the monthly increase in operating income if the manager's estimate about the increased sales volume is accurate
Perspective of developing countries : Developing countries are sometimes locked into unfair trading agreements with larger companies or large multinationals. They can't afford to withdraw as multina
Possible obstacles and opportunities in proposed solutions : A Major Hospital has become aware that many of the communities in its metropolitan area are within a health profession shortage area thus affecting the quality
Calculate the annualised Time Weighted Rate of Return : Calculate the annualised Time Weighted Rate of Return (TWRR) and the Money Weighted Rate of Return (MWRR) provided over the three-year term
Investing in the construction of a new hotel : An investor who is considering investing in the construction of a new hotel in the Kulonprogo area, Jogjakarta in Indonesia. The investor consults with you to a
Capture the opportunities and overcome the challenges : Problem: In your opinion, how will the external environment (both general environment and competitive environment) evolve in the future?
Advise the company on a good hedging strategy : A fair estimate of exchange rate after 180 days is expected to be USD 1.44 with a probability of 20%, Advise the company on a good hedging strategy
Describe kellogg competitive rivalry : 1.Evaluate Kellogg's competitive behavior. Have they made the right choices and what can they do to regain market share?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd