Which of the following rate of return performance measures make(s) adjustments for principal additions and withdrawals for determining rate of return in a period?
A) total return
B) daily valuation method
C) Modified BAI Method
D) b and c above include consideration of cash in and out when determining rate of return.

Question

Quizplus · Accepted Answer

The Daily Valuation Method and the Modified BAI Method both adjust for cash flows in and out (such as principal additions and withdrawals) when calculating the rate of return. This allows for a more accurate representation of investment performance over a period, especially in portfolios with frequent cash flows.

Which of the Following Rate of Return Performance Measures Make(s)