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CFA Level 1 Exam

3959 Questions

Question No. 1

# Assume the following series of financial transactions:

t0: Purchase 1500 shares of Allcycles.com for $18,555.00

t1: Purchase an additional 500 shares for $8,130.00

t2: Purchase an additional 1000 shares for $18,000.00

t3: Sell 1000 shares for $19,810

t4: Sell the remaining 2000 shares for $42,400

Investments of this type have typically justified a 12.50% rate of return. Assuming no taxes or transaction costs, what is the dollar-weighted rate of return for this series of investments?

Choose the correct option from the given list.

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