Option | Time weighted return | Money weighted return |

A | 28.60% | 27.98% |

B | 27.98% | 28.60% |

C | 26.80% | 29.78% |

- Option : B
- Explanation : Using a financial calculator, compute IRR. CF0 = - 50, CF1 = - 57, CF2 = 156, CPT IRR = 28.60% The money weighted return is equal to 28.60%

- Option : B
- Explanation : The dollar discount is: 1, 733.33 = 0.052 ∗ 100, 000 ∗ ( 120). The price would be $98,266.67 = 100,000 – 1,733.33.

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