Question

A household savings-account spreadsheet shows the following entries for the first day of each month: Date...

A household savings-account spreadsheet shows the following entries for the first day of each month:

Date Additions Withdrawals Value
January 148,000
February 2,500
March 4,000
April 1,500
May 13,460
June 23,000
July 3,000
August 198,000

Calculate the household’s monthly dollar-weighted average return for this period. (Round your answer to 2 decimal places.)

Homework Answers

Answer #1

Dollar weighted return will be calculated using XIRR function of the excel.

The final answer is 26.99%.

Please see the table below.The last row contains your answer. All financials are in $. I have used the XIRR function of excel to get the answer.

Date Time Period Dollar invested/ Withdrawn
1/1/2018 0 148000
1/3/2018 2.00 -2500
3/20/2018 78.00 -4000
7/5/2018 185.00 -1500
12/2/2018 335.00 -13460
3/10/2019 433.00 23000
4/7/2019 461.00 -3000
5/3/2019 487.00 -198000
Dollar weighted return 26.99%
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