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.

---

Definitions:

Two Years

A period of time equivalent to twenty-four months or 730 days, often significant in development and various legal or formal timelines.

Vygotsky

A psychologist who proposed the sociocultural theory, emphasizing the influence of social interaction, language, and culture on cognitive development.

Interdependent

A state in which two or more entities rely on each other for support, survival, or functioning.

Innate

Describes qualities or abilities present from birth, not acquired later.