One of the following sentences is true regarding the money weighted rate of return and the time weighted rate of return. Select one: a. TWRR require that the precise times of all cash flows of new money into and out of the fund over the period are known. O b. TWRR depends upon particular subdivisions of the period. c. MWRR depends upon any particular subdivision of the entire period and generally gives greater weight to the yields pertaining to the times when the fund is more constant. O d. Both measures have to yield the same result.

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 13MC: Which of the following discounts future cash flows to their present value at the expected rate of...
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One of the following sentences is true regarding the money
weighted rate of return and the time weighted rate of return.
Select one:
O a. TWRR require that the precise times of all cash flows of
new money into and out of the fund over the period are
known.
O b. TWRR depends upon particular subdivisions of the
period.
C. MWRR depends upon any particular subdivision of the
entire period and generally gives greater weight to the
yields pertaining to the times when the fund is more
constant.
d. Both measures have to yield the same result.
Transcribed Image Text:One of the following sentences is true regarding the money weighted rate of return and the time weighted rate of return. Select one: O a. TWRR require that the precise times of all cash flows of new money into and out of the fund over the period are known. O b. TWRR depends upon particular subdivisions of the period. C. MWRR depends upon any particular subdivision of the entire period and generally gives greater weight to the yields pertaining to the times when the fund is more constant. d. Both measures have to yield the same result.
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