In Measuring the Comparative Performance of Different Fund Managers, the Preferred

question 21

Multiple Choice

In measuring the comparative performance of different fund managers, the preferred method of calculating rate of return is

• A)internal rate of return.
• B)arithmetic average.
• C)dollar weighted.
• D)time weighted.

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Definitions:

Cost Drivers

Factors that cause the cost of an activity or process to change, used in strategic management to control and reduce costs.

Volume

The quantity of something, often used to refer to the total amount of stocks or contracts traded in a financial market.

Departmental Overhead Rate

A rate used to allocate indirect costs to products or services, calculated separately for each department within an organization.

Mixing Department

A section within a manufacturing facility where raw materials are combined or processed together to create a product or a component of a product.