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

question 58

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 above

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Definitions:

Ethical

Concerned with or relating to ethics or the standards of right and wrong behavior.

Cause and Effect

A relationship in which one event (the cause) makes another event happen (the effect).

Placebo Effect

The phenomenon where patients experience real improvements in their condition after receiving a treatment that has no therapeutic effect.

Positive Expectations

The belief or anticipation that something good will happen in the future, often leading to more favorable outcomes due to optimistic attitudes.