At the beginning of Year 1, a fund has USD10 million under management; it earns a return

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At the beginning of Year 1, a fund has USD10 million under management; it earns a return of 14 percent for the year. The fund attracts another net USD100 million at the start of Year 2 and earns a return of 8 percent for that year. The money-weighted rate of return of the fund is most likely to be:

A. less than the time-weighted rate of return.

B. the same as the time-weighted rate of return.

C. greater than the time-weighted rate of return.

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