In measuring the performance of a portfolio, the time-weighted rate of return may be preferred to the dollar-weighted rate of return because:

a. When the rate of return varies, the time-weighted return is higher.

b. The dollar-weighted return assumes all portfolio deposits are made on day 1.

c. The dollar-weighted return can only be estimated.

d. The time-weighted return is unaffected by the timing of portfolio contributions and withdrawals.

.P-96