Examlex
Which of the following is a common mistake in group work?
Dollar-Weighted Return
A method of calculating an investment's return that takes into account the timing and amount of capital inflows and outflows.
Internal Rate of Return
A financial metric used to estimate the profitability of potential investments, representing the discount rate that makes the net present value of all cash flows from a particular project equal to zero.
Portfolio
A group of investment vehicles comprising equities, debt instruments, natural resources, actual currency, and cash-like assets, also covering collective investments such as closed-end funds and exchange-traded funds.
Geometric Average Return
The average rate of return on an investment per year, geometrically linked to account for the compounding effect of returns over time.
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