Which of the following is true regarding dollar returns?
A)Dollar returns fail to take into account the scale of the investment.
B)Dollar returns take into account the timing of the investments.
C)Dollar returns fail to take into account the timing of investment.
D)Both A and C are true regarding dollar returns.

Question

Quizplus · Accepted Answer

Dollar returns show the absolute gain or loss, but they don't adjust for the size of the investment (scale) or when the investment was made (timing). This makes comparisons between different investments or periods challenging without additional context.

Which of the Following Is True Regarding Dollar Returns