on 28-Jan-2015 (Wed)

Flashcard 149645671

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.
$$\frac{105}{100}\times\frac{170}{155} - 1$$