The time weighted return is a method of measuring performance. Which of the following statements BEST describes time weighted return? A) Time weighted return on investment considers the impact of capital inflows and outflows of an investment. B) The rate of return that discounts a portfolio’s terminal value and interim cash flows back to its initial value. C) The discount rate that equates the present value of future cash flows with the market value. D) The probability weighted return of cash flows in a portfolio.

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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The time weighted return is a method of measuring performance. Which of the following statements BEST describes time weighted return?
A) Time weighted return on investment considers the impact of capital inflows and outflows of an investment.
B) The rate of return that discounts a portfolio’s terminal value and interim cash flows back to its initial value.
C) The discount rate that equates the present value of future cash flows with the market value.
D) The probability weighted return of cash flows in a portfolio.

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