date cash inflow from investor cash outflow from investor Jan 1, 20x1 $10m initial investment dec 31, 20x1 -$4m Jan 1 20x3 $5m Dec 31, 20x3 -$5m january 1 20x4 $3m Year Annual return 20x1 8% 20x2 18% 20X3 -6% A portfolio manager wants to evaluate the perfomance of this account, calculate: Dollar weigheted return time weighted return a. 7% 6.7% b. 4.4% 6.2% c. 13.7% 6.2% d. 9% 6.7% 2.a stock with a coefficient of variation of .5 has a.variance equal to half the stocks expected return b.expected return equal to half the stocks’s variance c.expected return equal to half of stocks standard diviation d. standard diviation equal to half the stocks expected return

> > 2.a stock with a coefficient of variation of .5 > has > a.variance equal to half the stocks expected > return > b.expected return equal to half the stocks’s > variance > c.expected return equal to half of stocks standard > diviation > d. standard diviation equal to half the stocks > expected return D? CV = st dev/ (x)

I agree, D: CV = st dev / (x) .5 = st dev / (x) .5x = st dev

Lets see… standard deviation is the square root of the variance: Variance= the squared difference of every single observation from its mean (in this case return) divided by the number of observation. D

yes its D. But why is everyone dogging the first one. I could not do the dollar weighted part. i need your help guys come on.

forgot how to do first part, doing quant all day so I should be able to do it later.

Dollar weighted return= IRR use calculator Time weighted return= Geometric mean

strangedays Wrote: ------------------------------------------------------- > Dollar weighted return= IRR use calculator > > Time weighted return= Geometric mean recall that Geo rtns are typically < arithmetic returns