Compute the annual dollar-weighted return

Reference no: EM132959525

Question

A company makes a $50 million investment. At the end of the first 3 quarters, they withdrawal $5 million. Using the information below, answer the following questions:

Time
Inve s tme nt Contribution (withdrawal)
Investment Value (inclusive of withdrawals and contributions )
0 0.25
0.5 0.75 1
50,000,000 -5,000,000
-5,000,000 -5,000,000 0
50,000,000 47,000,000
41,000,000 35,000,000 38,000,000

- Compute the simple Holding Period Return (HPR)
- Compute the annual time-weighted return
- Compute the annual dollar-weighted return

Reference no: EM132959525

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