If a portfolio experiences cash withdrawals and deposits, the best performance measure is the
A) internal rate of return
B) payback period
C) Treynor measure
D) Sharpe measure

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is the best performance measure for portfolios with cash flows such as withdrawals and deposits, as it accounts for the timing and magnitude of these cash flows.

If a Portfolio Experiences Cash Withdrawals and Deposits, the Best