The Dollar-Weighted Return Is the ________

question 1

Multiple Choice

The dollar-weighted return is the ________.

• A) difference between cash inflows and cash outflows
• B) arithmetic average return
• C) geometric average return
• D) internal rate of return

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Definitions:

Mutual Fund

An investment vehicle that pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.

Brokers

Individuals or firms that act as intermediaries between buyers and sellers in financial transactions, earning a commission for their services.

Index Funds

Mutual funds or exchange-traded funds that aim to replicate the performance of a specific market index by holding the same stocks in the same proportions.

Altruistic Behavior

Actions undertaken to help others with no direct benefit to the individual performing the actions, often at a cost to themselves.