In the mutual fund industry,the most common performance measure is a hypothetical rate of return which 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 most common performance measure in the mutual fund industry is the average annual total return, which calculates the annualized return over a period of time. This is a more accurate measure compared to cumulative total return and compounded geometric return, which assume constant performance over the entire period. Total indexed return is not a common performance measure in the industry.

In the Mutual Fund Industry,the Most Common Performance Measure Is