Your return will generally be higher using the __________ if you time your transactions well and your return will generally be higher using the __________ if you time your transactions poorly.

Question

Quizplus · Accepted Answer

The dollar-weighted return method is sensitive to the timing and amount of cash flows, so if you time your transactions well, it can result in a higher return. Conversely, the time-weighted return method is not affected by cash flow timing, so if you time your transactions poorly, it can result in a higher return compared to the dollar-weighted method.

Your Return Will Generally Be Higher Using the __________ If