Quantitative Methods - Quantitative Methods Section 1
| Option | Time weighted return | Money weighted return |
| A | 28.60% | 27.98% |
| B | 27.98% | 28.60% |
| C | 26.80% | 29.78% |
Which of the following options most likely represent the time weighted and money weighted returns?
- Option : B
- Explanation : Using a financial calculator, compute IRR. CF0 = - 50, CF1 = - 57, CF2 = 156, CPT IRR = 28.60% The money weighted return is equal to 28.60%
- Option : B
- Explanation : The dollar discount is: 1, 733.33 = 0.052 ∗ 100, 000 ∗ ( 120). The price would be $98,266.67 = 100,000 – 1,733.33.
