A-

To take into account the variation of amounts of money under the administration of a fund, treating the cash flows as if they were a capital budget project, the best measure to calculate the performance of the fund is:

a. Dollar-weighted average

b. geometric average

c. weighted average

d. Arithmetic average

B-

Various measures can be used to determine the performance of the investment portfolio. The one that does the most justice to the portfolio manager because it is not affected by the change in income or cash disbursements to the fund is:

a. Time-Weighted Return

b. Holding Period Return

c. Dollar-weighted Return

d. Weighted Average Return