AN ANALYST GATHERS THE FOLLOWING INFORMATION ABOUT THE PERFORMANCE...

25. - MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM AFTERNOON VERSIONB QUESTIONS 2014
MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM AFTERNOON VERSIONB QUESTIONS 2014

25. An analyst gathers the following information about the performance of a portfolio ($ millions):

Cash Inflow (Outflow)

Value at End

Quarter Value at Beginning of Quarter

(Prior to Inflow or Outflow)

at Beginning of Quarter

of Quarter

1 2.0 0.2 2.4

2 2.4 0.4 2.6

3 2.6 (0.2) 3.2

4 3.2 1.0 4.1

The portfolio’s annual time-weighted rate of return is closest to:

A. 8%.

B. 27%.

C. 32%.