The Market Value of a Fund and Its Cash Flows

Multiple Choice

The market value of a fund and its cash flows at various dates in a calendar year are shown below: Date Value of fund before withdrawals Withdrawals1/1 $300,000 $0 m months after 1/1 315,000 15,000 2m months before 12/31 315,000 15,000 12/31 315,000 0The dollar-weighted rate of return for the year is 16.0%. In what range is m?

A) Less than 2.1
B) 2.1 but less than 2.5
C) 2.5 but less than 2.9
D) 2.9 but less than 3.3
E) 3.3 or more