A fund receives investments at the beginning of each year and generates returns for three years as

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A fund receives investments at the beginning of each year and generates returns for three years as follows:

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Which return measure over the three-year period is negative?
A. Geometric mean return B. Time-weighted rate of return C. Money-weighted rate of return

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2024 CFA Program Curriculum Level I Volume 1

ISBN: 9781953337672

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Authors: CFA Institute

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Question Posted: Feb 01, 2024 08:30 AM

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A fund receives investments at the beginning of each year and generates returns for three years as

Question:

Exhibit 1: Investments and Returns for Three Years Year of Investment 2 3 Assets under Management at the Beginning of each year USD1,000 USD4,000 USD45,000 Return during Year of Investment 15% 14% -4%

Step by Step Answer:

C is correct The moneyweighted rate of return considers both the timing and amounts ...View the full answer

2024 CFA Program Curriculum Level I Volume 1

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