If You Want to Measure the Performance of Your Investment

question 8

Multiple Choice

If you want to measure the performance of your investment in a fund, including the timing of your purchases and redemptions, you should calculate the ________.

• A) geometric average return
• B) arithmetic average return
• C) dollar-weighted return
• D) index return

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Definitions:

Strategic

Relating to the identification of long-term or overall aims and interests and the means of achieving them.

Team Building Retreats

Organized activities and programs designed to enhance social relations and define roles within teams, often in an offsite location.

Unaligned Incentive Structure

A situation where reward systems do not match the goals or desired outcomes of a team or organization, potentially leading to conflicting behaviors.

Authoritarian Manager

A management style characterized by individual control over all decisions with little input from group members.