Carl Invested $100,000 in a Fund, Which Earned 8% Over

question 49

Multiple Choice

Carl invested $100,000 in a fund, which earned 8% over the next year. At the end of the year, he invested an additional $50,000 and the fund earned 18% over the next year. Carl withdrew no money from the fund. Which of the following statements about time-weighted return (TWR) and money-weighted return (MWR) is most accurate?

• A) TWR is greater than MWR, and MWR is the more appropriate measure for Carl.
• B) MWR is greater than TWR, and MWR is the more appropriate measure for Carl.
• C) TWR is greater than MWR, and TWR is the more appropriate measure for Carl.
• D) MWR is greater than TWR, and TWR is the more appropriate measure for Carl.

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