1. A Risky Portfolio earned the following rates of return for a Risky Portfolio over the last 4 years: 12%, 9%, -7%, and 15%. If you had invested a single lump sum of $1,000, how much would your investment be worth at the end of the four years?
a) $1275.79
b) $1,305.65
c) $1,323.09
d) $1,373.43
2. Find the Dollar Weighted Average return of $1000 invested each year at the beginning of each year for 3 years earning the following returns (10%, -5%, and 15%). [NOTE: set calculators to BEGIN]
a) 6.317%
b) 6.667%
c) 6.985%
d) 7.065%