In Which of the Following Situations Would It Be Most

question 12

Multiple Choice

In which of the following situations would it be most appropriate to measure an investment manager's performance using the IRR rather than the time-weighted average periodic return?

• A) Client hires manager to place capital as soon as possible.
• B) Client requires a large proportion of its invested capital to be liquid at all times for withdrawal on demand.
• C) Client gives manager a line of capital with discretion over when to acquire and dispose of illiquid assets.
• D) All of the above.

---

Definitions:

Notes Organized

A method of arranging or structuring notes in a systematic manner for ease of study or reference.

Chapter Introductions

Brief overviews or summaries at the beginning of chapters in a book, designed to provide context or highlight key themes.

Chapter Summaries

Concise explanations or overviews of the main points or themes in chapters of a book.

Textbook

A book containing detailed information on a particular subject, written with the intention of instructing or educating.