Find the dollar-weighted rate of return on this investment

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Reference no: EM131528543

You invest $5,000 at time t = 0, an additional $3,000 at t = 1/4, take out $1,000 at t = 1/2, and add $4,000 at t = 3/4. You have $8,250 at t = 1/4, $8,000 at t = 1/2, $12,400 at t = 3/4 and $12,975 at t = 1.

(1) Find the dollar-weighted rate of return on this investment.

(2) Find the time-weighted rate of return on this investment.

Reference no: EM131528543

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