Measures of returns include such methods as ___which is used when deposits or withdrawals occur sometime between the beginning and end of the investment interval.
A) time-weighted returns
B) the geometric mean
C) the arithmetic mean
D) dollar-weighted returns

Question

Quizplus · Accepted Answer

Dollar-weighted returns take into account the timing and size of cash flows, making it the appropriate choice for investments with deposits or withdrawals occurring during the investment interval. Time-weighted returns, geometric mean, and arithmetic mean do not consider the effect of cash flows.

Measures of Returns Include Such Methods as ___Which Is Used