In investment management applications, the Internal Rate of Return is commonly referred to as which of the following?
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A. B. C. D. E. F.A
Performance presentation is an important consideration in the field of investment management, and often involves a rather complex series of calculations. This is particularly true for portfolio's which are characterized by significant additions and withdrawals, as the cash flow measurement is periodically disrupted. In the
Level I readings, two specific measurement tools are discussed: the dollar-weighted rate of return and the time-weighted rate of return. In investment management applications, the IRR equation is commonly referred to as the "dollar-weighted rate of return" because it incorporates both the timing and size of all cash flows in the determination of the return figure.