time-weighted rates of interest
deposit of $1000 are made into an invested fund at time 0 and time 1. The fund balance is $1200 at time 1 and $2200 at time 2.
a)compute the annual effectiveyield rate computed by a dollar-weighted method?
b) compute the annual effective yield rate which is equivalent to that produced by a dollar-weighted calculation?
you invest $2000 at time t=0 an aadditional $1000 at time t=1/2 . At time t=1 you have $3200in you account. Fund the amount that would have to be in your account at time t=1/2, if the time-weighted rate of return. Assume simpleinterest.
27. an investor deposits 50 in an investment account on january 1. The following summarizes the activity in the account during the year.
On june 30 the value of the account is 157.50. On december 31the value of the account is X.Using the time-weighted method, the equivalent annual yield during the first 6 moths is equal to time-weighted annual yield during the entire 1-year period calculate X.you are given the following information about an investec account:
Over the year, the time-weighted return is 0%, and the dollar-weighted return is Y. calculate Y.
let A be the fund balance onjanuary 1, B the balance on june 30, and C the balance on december 1.
a) if there are no deposits or withdrawals, show that yield rates computed by the dollar-weighted method and the time-weighted methodare both equal to (C- A)/A.
b) if there was a single deposit of D immediately after the june 30 balance was calculated, fund expression for the dollar-weighted yield rates.
c) rework (b) if thedeposit occurred immediately before the june 30 balance was calculated.
d) verbally interpret the fact that the dollar-weighted yield rates in (b) and (c) are equal.
e) show that the time-weighted yieldrate in (b) is greater that in (c)
tasas ponderadas en el tiempo de interés
depósito de $ 1.000 se realizan en un fondo de inversión en el tiempo 0 y el tiempo 1. El saldo de fondos es de $ 1200 a...
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