The dollar-weighted return on a portfolio is equivalent to
A) the time-weighted return.
B) the geometric average return.
C) the arithmetic average return.
D) the portfolio's internal rate of return.
E) None of the options are correct.

Question

Quizplus · Accepted Answer

The dollar-weighted return on a portfolio is equivalent to the portfolio's internal rate of return (IRR), which takes into account the timing and amount of all cash flows, including contributions and withdrawals.

The Dollar-Weighted Return on a Portfolio Is Equivalent to