In Measuring the Comparative Performance of Different Fund Managers, the Preferred

question 39

Multiple Choice

In measuring the comparative performance of different fund managers, the preferred method of calculating rate of return is

• A)internal rate of return.
• B)arithmetic average.
• C)dollar weighted.
• D)time weighted.
• E)None of the options

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Definitions:

Habituation

A psychological learning process wherein there is a decrease in response to a stimulus after being repeatedly exposed to it.

Standing Position

A basic human posture where the body is upright and supported by the feet, commonly used for various activities and tasks.

Habituation

The process by which an individual becomes accustomed to a stimulus and reacts less strongly over time.

Perceptual Constancy

Perceiving objects as maintaining their identity although sensations from them change as their positions change.