The Internal Rate of Return Is a Less Meaningful Measure

question 32

True/False

The internal rate of return is a less meaningful measure of an investment's performance than holding period return if the holding period is other than 1 year.

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Definitions:

Unconditioned Stimulus

A stimulus that innately and spontaneously evokes a reaction without any previous conditioning.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention.

Condition

A broad term that can refer to the state of something, especially in terms of its appearance, quality, or working order; in psychology, it relates to the state of learning or being under specific conditions.

Galvanic Skin Response

A physiological reaction where the conductivity of the skin changes in response to stress or emotional arousal.