(6 marks) A pension fund portfolio begins with $500, 000 and earns 15% the first year and 10%
the second year. At the beginning of the second year, the sponsor contributes another $500, 000.
(a) (3 marks) Calculate the time-weighted geometric average return and arithmetic average return on this portfolio.
(b) (3 marks) Calculate the dollar-weighted rates of return on this portfolio