Time-weighted,as opposed to money-weighted,return captures the rate of return actually earned by the fund manager.

Question

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Time-weighted return takes into account the timing of cash flows into and out of the fund, while money-weighted return considers the impact of cash inflows and outflows on the overall rate of return. Therefore, time-weighted return is a more accurate measure of the performance of the fund manager.

Time-Weighted,as Opposed to Money-Weighted,return Captures the Rate of Return Actually