Tom Decides to Begin Investing Some Portion of His Annual

Multiple Choice

Tom decides to begin investing some portion of his annual bonus,beginning this year with $6,000.In the first year he earns a 8% return and adds $3,000 to his investment.In the second his portfolio loses 4% but,sticking to his plan,he adds $1,000 to his portfolio.In this year his portfolio returns 2%.What is Tom's dollar-weighted average return on his investments?

A) 0.34 percent
B) 1.20 percent
C) 1.54 percent
D) 2.23 percent
E) 2.58 percent