Edited, memorised or added to reading list

on 28-Jan-2015 (Wed)

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


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