What the investor actual dollar-weighted average return

Assignment Help Financial Management

Reference no: EM131451349

Suppose that an investor opens an account by investing $1,000. At the beginning of each of the next four years, he deposits an additional $1,000 each year, and he then liquidates the account at the end of the total five-year period. Suppose that the yearly returns in this account, beginning in year 1, are as follows: −9 percent, 17 percent, 9 percent, 14 percent, and −4 percent. Determine what the investor’s actual dollar-weighted average return was for this five-year period.

Reference no: EM131451349

Questions Cloud

Federal reserve reacting to the strength economic activity : which one is directly related to the Federal Reserve reacting to the strength (or lack there of ) overall economic activity?

Find the modified internal rate of return : Find the modified internal rate of return for the following series of future cash flows if the company is able to reinvest cash flows received from project

Considering including two pieces of equipment : Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year's capital budget. The projects are ind

At what rate is the dividend growing : The last dividend paid was $2.21 per share and the market rate of return is 15.8 percent. At what rate is the dividend growing?

What the investor actual dollar-weighted average return : Determine what the investor’s actual dollar-weighted average return was for this five-year period.

Project has an initial cost-expected net cash inflows : A project has an initial cost of $2,925, expected net cash inflows of $1,325 per year for 5 years, and a cost of capital of 11.30%. What is the project's IRR?

What will the bonds sell for at issuance : If the face value is $1,000, what will the bonds sell for at issuance? How many zero coupon bonds will they have to issue to raise $2,175,000?

Calculate the expected market price of the share in one year : Citadel Holdings is experiencing rapid growth. Calculate the expected market price of the share in one year.

What is one share of this stock worth : What is one share of this stock worth to you if you require a 10 percent rate of return on similar investments?

User Account

All Pages