Question

All of the following statements about Time Weighted Average Return are true EXCEPT that Time Weighted Average Return:A. is the return measure used for mutual fund performance chartB. assumes investment of a fixed amount, ignoring additional deposits or withdrawals of cash at different points in timeC. is the same as Dollar Weighted Average ReturnD. allows for accurate comparison of one fund's performance to that of other funds

Answer 1

C. is the same as Dollar Weighted Average Return.

Step-by-step explanation:

Mutual funds provide for returns in timely manner, generally the returns for a specified time period are fixed. Thus, can be measured on time basis.

This method of weighted average of time based do not allow in its calculations of any additional deposits or any kind of withdrawals in between the calculation for the time period.

It allows a specific comparison of the fund under consideration with some another fund.

The dollar weighted average return is not used as for mutual funds, and the time weighted average is way different to it.