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. I know the calculation of Arithmetic returns is 5.40% and Geometric returns 4.90%.
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here