April 2017 Q8 MWRR

Discussion in 'CT1' started by dan r, Sep 9, 2017.

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  1. dan r

    dan r Member

    Two investment funds A and B are administered by different managers. The initial values of the two funds on 1 January 2015 were £1.5 million and £2.3 million, respectively. The funds received additional net cash flows at the beginning of 2015 and 2016, as follows:

    Fund Net Cash Flows 1 January 2015 1 January 2016
    Fund A £300,000 £1,700,000
    Fund B £2,000,000 £200,000

    The fund managers achieved the following annual returns during 2015 and 2016:

    Fund Annual Returns 2015 2016
    Fund A 42% 3%
    Fund B 36% 2%

    (ii) Calculate the annual effective money weighted rate of return per annum for each fund for the period 1 January 2015 to 31 December 2016. [8]

    dont understand this q at all- any help would be great

    thanks
     
  2. Ellen

    Ellen Member

     

    Attached Files:

    John Lee likes this.
  3. Ellen

    Ellen Member

    I hope it helps!
     
    dan r likes this.
  4. dan r

    dan r Member

    Thanks Ellen!! It did :)
     

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