Which of the Following Statements About Portfolio Return Calculation Is

question 45

Multiple Choice

Which of the following statements about portfolio return calculation is most accurate? Time-weighted returns are best for measuring the returns of a:

• A) fund manager, whereas money-weighted returns are best for a portfolio owner.
• B) portfolio owner, whereas money-weighted returns are best for a fund manager.
• C) fund manager, whereas money-weighted returns are no longer used in practice.
• D) portfolio owner, whereas money-weighted returns are generally used in practice.

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Definitions:

Monopolist

An individual or entity that is the sole supplier of a particular commodity or service, having significant control over its market.

Price Discrimination

The strategy of selling the same product or service at different prices to different customers, based on factors like willingness to pay, market segments, or purchase quantity.

Consumer's Age

A demographic factor affecting market preferences and purchasing behavior, reflecting different trends and needs based on age groups.

Profits

The financial gain that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.