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Question
Tom decides to begin investing some portion of his annual bonus, beginning this year with $6,000. In the first year he earns a 8% return and adds $3,000 to his investment. In the second his portfolio loses 4% but, sticking to his plan, he adds $1,000 to his portfolio. In this year his portfolio returns 2%. What is Tom's dollar-weighted average return on his investments?A. 0.34 percent
B. 1.20 percent
C. 1.54 percent
D. 2.23 percent
E. 2.58 percent
Answer
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