In the mutual fund industry, the most common performance measure is a hypothetical rate of return that assumes performance is constant over the entire period and is known as the:
A) cumulative total return.
B) average annual total return.
C) total indexed return.
D) compounded geometric return.

Question

Quizplus · Accepted Answer

The average annual total return is a common performance measure in the mutual fund industry that assumes a constant rate of return over the entire period.

In the Mutual Fund Industry, the Most Common Performance Measure