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Tags

#finance #steiner-mastering-financial-calculations-3ed

Question

If you invest in a fund 100 now, after 6 months the fund's value is 105, you add another 50 to the fund and after another 6 months (so a year from now), the fund's value is 170, what is the **time-weighted rate** of return of the year for this fund? Give the equation.

Answer

\(\frac{105}{100}\times\frac{170}{155} - 1\)

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