Monthly rates of return are as follows: January = 2.800%, February = 4.950% and March = 3.540%. The monthly time-weighted rate of return for the three month period is ________.

Respuesta :

Answer:

3.76% will be the rate of return per month

while 11.71% the rate of return for the quarter

Explanation:

We have to look for a rate which is equivalent to this three rates.

[tex](1+r_1)(1+r_2)(1+r_3) = (1+r_e)^3\\(1+.028)(1+.0495)(1+.0354)=(1+r_e)^3\\\\\sqrt[3]{1,1170785644} -1 = r_e\\r_e = 0.037595086[/tex]