The Dollar-Weighted Return on a Portfolio Is Equivalent to

question 16

Multiple Choice

The dollar-weighted return on a portfolio is equivalent to

• A)the time-weighted return.
• B)the geometric average return.
• C)the arithmetic average return.
• D)the portfolio's internal rate of return.
• E)none of the above.

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Definitions:

Percentage of Variance

A statistical measure that indicates the proportion of the total variance in a dataset that is attributed to a particular variable or factor.

Restriction of Range

A statistical issue where the variance of a variable is limited, potentially affecting the results or conclusions of research.

Twin Studies

A research method used to assess the relative influence of genetic and environmental factors on individual traits and behaviors by comparing monozygotic (identical) and dizygotic (fraternal) twins.

Genetic Influences

The effects of genes passed from parents to offspring that contribute to individual characteristics and behaviors.