Example 1 (SOA):

Example 1 (SOA):A fund earned investment income of 9200 during 1999. The beginning and ending balances of the fund were 100,000 and 129,200, respectively. A deposit was made at time K during the year. No other deposits or withdrawals were made. The fund earned 8% in 1999 using the dollar-weighted method. Determine K.

Example 2 (SOA):

On January 1, 1999 Luciano deposits 90 into an investment account. On April 1, 1999, when the amount in Luciano's account is equal to X, a withdrawal of W is made. No further deposits or withdrawals are made to Luciano's account for the remainder of the year. On December 31, 1999, the amount in Luciano's account is 85. The dollar-weighted return over the 1-year period is 20%. The time-weighted return over the 1-year period is 16%. Calculate X.

Example 3:

You are given the following information concerning the market values, contributions and benefits paid by a certain fund which has a time-weighted rate of return for 1999 of 10.66%.

Date

Amount

Trust market values: 1/1/99

1,000,000

4/1/99 820,000

7/1/99 990,000

10/1/99 1,100,000

Contributions received: 6/30/99 100,000 9/30/99 100,000 Benefits paid:

3/31/99 200,000

In what range is the trust market value on 1/1/2000?