50 75 D 100 D 22 Edwin last has a security that returned 8

50. ????? 75. @ D??? 100. ?D?? 22. Edwin last has a security that returned 88, -28, 6% and 12% over the four periods. What is the time weighted rate of return? a. b. c. d. 5.875%. 5.9258. 6.000% 6.0258. Answer: 23. A fixed income security whose price has fallen as a result of an in the market place is said to be subject

Solution

time weighted rate of return = [( 1+ 8%) * (1+(-2%)) *(1+ 6%) *(1+12%)]^0.25 -1

= (1.2565)^ 0.25 -1

= 1.058743-1

=5.874 % or say 5.875 %

therefore its option A.