We know that the geometric average (time-weighted return) on a risky investment is always lower than the

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We know that the geometric average (time-weighted return) on a risky investment is always lower than the corresponding arithmetic average. Can the IRR (the dollar-weighted return) similarly be ranked relative to these other two averages?

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Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: Jan 04, 2013 08:05 AM

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We know that the geometric average (time-weighted return) on a risky investment is always lower than the

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The IRR ie the dollarweighted return cannot be ranked relative to either the geometric average retur...View the full answer

Investments

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