单选题

An investor’s transactions in a mutual fund and the fund’s returns over a four-year period are provided in the table below:

  Year
1 2 3 4
New investment at the beginning of the year $2,500 $1,500 $1,000 $0
Investment return for the year -20% 65% -25% 10%
Withdrawal by investor at the end of the year $0 -$500 -$500 $0

Based on these data, the money-weighted return (or internal rate of return) for the investor is closest to:

【正确答案】 B
【答案解析】

B is correct. The calculations are shown below:

The money-weighted return is calculated by solving for i in the equation below: