The dollar-weighted return on a portfolio is equivalent to
A)the time-weighted return.
B)the geometric average return.
C)the arithmetic average return.
D)the portfolio's internal rate of return.
E)none of the above.

Question

Quizplus · Accepted Answer

The dollar-weighted return on a portfolio is equivalent to the portfolio's internal rate of return (IRR), which accounts for the timing and amount of cash flows.

The Dollar-Weighted Return on a Portfolio Is Equivalent to