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7. Which of the following return calculating methods is best for evaluating the annualized returns of a 401K plan for an investor who has made

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7. Which of the following return calculating methods is best for evaluating the annualized returns of a 401K plan for an investor who has made annual deposits of $20,000 to an account for each of the last five years? A Geometric mean return. B Arithmetic mean return. C Money-weighted return. 5. An investor performs the following transactions on the shares of a firm. - At t=0, she purchases a share for $1,000. - At t=1, she receives a dividend of $50 and then purchases five additional shares for $1,250 each. - At t=2, she receives a total dividend of $300 and then sells the six shares for $1,300 each. What will be the relationship between time weighted return and money weighted return? A. Time weighted return is higher than money weighted return B. Money weighted return is higher than time weighted return C. Money weighted return is equal to time weighted return EXplain your answer. NO CALCULATION OF MONEY AND TIME WEIGHTED RETURN ARE NEEDED

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