1. Consider the statements below:

I) Time-weighted returns are always larger or equal than dollar-weighted returns.

II) Mutual funds report time-weighted returns in their marketing materials. If the fund reports a 10% per year return over a three-year period, any investor who had some money invested in the fund over that entire three-period experiences a dollar-weighted return of 10% in that investment, regardless of any of her inflows or outflows within the three year period.

		I and II are TRUE.
		I is TRUE and II is FALSE.
		I is FALSE and II is TRUE.
		I and II are FALSE.