The Dollar-Weighted Return on a Portfolio Is Equivalent to

question 74

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 options are correct.

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Definitions:

Emissions Tax

A tax imposed on the emission of pollutants, aimed at reducing the environmental externality costs of these emissions.

Optimal Tax

A tax designed to generate government revenue with the minimum economic distortion or welfare loss.

Marginal Social Cost

The total cost to society of producing an additional unit of a good or service, including both the cost to the producer and the cost of any negative externalities associated with production.

Marginal Social Benefit

Marginal social benefit is the additional gain to society as a whole from producing one more unit of a good or service.