3. Which one of the following does a linked IRR accomplish?

a. Combines money and time-weighted method.

b. Combines time and money-weighted method.

c. Both a and b

d. None of the above

4. I purchased a stock 2 years ago for $20 and last year at this time it was worth $25, making me a 25% return. This year on the anniversary the price had dropped from $25 to $20, a 20% loss. Using the Money weighted return which of the following is the correct annual return for this investment?

1. 0%
2. 2.5%
3. 10%
4. 12.5%