A fund receives investments at the beginning of each year and generates returns for three years as
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A fund receives investments at the beginning of each year and generates returns for three years as follows:
Which return measure over the three-year period is negative?
A. Geometric mean return B. Time-weighted rate of return C. Money-weighted rate of return
Transcribed Image Text:
Exhibit 1: Investments and Returns for Three Years Year of Investment 2 3 Assets under Management at the Beginning of each year USD1,000 USD4,000 USD45,000 Return during Year of Investment 15% 14% -4%
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C is correct The moneyweighted rate of return considers both the timing and amounts ...View the full answer
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