The dollar-weighted average return is measured by calculating the:
A) geometric average return
B) internal rate of rate
C) annual compounded average return.
D) arithmetic average return.
E) percentage return.

Question

Quizplus · Accepted Answer

The dollar-weighted average return is measured by calculating the internal rate of return (IRR), which takes into account the timing and amount of cash flows, making it a more accurate reflection of investment performance over time compared to simple average returns.

The Dollar-Weighted Average Return Is Measured by Calculating The