Over the year, the time-weighted return is 0%, and the dollar-weighted return is Y. Calculate Y. Y = %

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...
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account:
Date
January 1
July 1
December 31
You are given the following information about an investment
Y =
Value Immediately Before Deposit Deposit
49
56
X
Over the year, the time-weighted return is 0%, and the dollar-weighted return is Y.
Calculate Y.
%
X
Transcribed Image Text:account: Date January 1 July 1 December 31 You are given the following information about an investment Y = Value Immediately Before Deposit Deposit 49 56 X Over the year, the time-weighted return is 0%, and the dollar-weighted return is Y. Calculate Y. % X
An investor deposits 50 in an investment account on January
1. The following summarizes the activity in the account during the year:
Date Value Immediately Before Deposit Deposit
March 15
20
June 1
80
October 1
75
X = $
40
80
175
On June 30 the value of the account is $183.52. On December 31 the value of the
account is X. Using the time-weighted method, the equivalent annual yield during the
first 6 months is equal to the the time-weighted yield during the entire 1-year period.
Calculate X.
Transcribed Image Text:An investor deposits 50 in an investment account on January 1. The following summarizes the activity in the account during the year: Date Value Immediately Before Deposit Deposit March 15 20 June 1 80 October 1 75 X = $ 40 80 175 On June 30 the value of the account is $183.52. On December 31 the value of the account is X. Using the time-weighted method, the equivalent annual yield during the first 6 months is equal to the the time-weighted yield during the entire 1-year period. Calculate X.
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