Comparing the Dollar-Weighted and Time-Weighted Return Methods, the

question 49

Multiple Choice

Comparing the dollar-weighted and time-weighted return methods, the

• A) two methods give the same return for an actively managed portfolio.
• B) time-weighted method is generally preferred.
• C) time-weighted return is more dependent on uncontrollable deposits and withdrawals.
• D) dollar-weighted return is not affected by clients' actions.

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Definitions:

Structured Series

A sequence of events, tasks, or components that are organized in a predetermined, systematic way to achieve a specific objective or to carry out a process.

Job Positions

Roles or titles assigned to employees that define their responsibilities, duties, and status within an organization.

Age-fifty Transition

A period of adjustment and reevaluation often experienced around the age of fifty, marked by personal reflection and life assessment.

Stable Period

A phase during which conditions remain relatively constant or unchanged, often indicating a state of equilibrium or balance within an environment or system.