Bill Has Been Adding Funds to His Investment Account Each

Multiple Choice

Bill has been adding funds to his investment account each year for the past 3 years.He started with an initial investment of $1,000.After earning a 10 percent return the first year,he added $3,000 to his portfolio.In this year his investments lost 5 percent.Undeterred,Bill added $2,000 the next year and earned a 2 percent return.Last year,discouraged by the recent results,he only added $500 to his portfolio,but in this final year his investments earned 8 percent.What was Bill's dollar-weighted average return for his investments?

A) 1.5 percent
B) 2.0 percent
C) 2.5 percent
D) 3.0 percent
E) 3.5 percent