Which of the following statements about return calculation is most accurate?
A) Time-weighted returns are always higher than money-weighted returns.
B) Money-weighted returns are always higher than time-weighted returns.
C) The GIPS require that time-weighted returns are reported for most asset classes.
D) The time-weighted return is equivalent to the IRR.

Question

Quizplus · Accepted Answer

The Global Investment Performance Standards (GIPS) require that time-weighted returns are reported for most asset classes because they are not affected by the timing of cash flows, providing a more accurate measure of a manager's performance.

Which of the Following Statements About Return Calculation Is Most