Q11.Would a client making additions or withdrawals of funds most likely affect their portfolio's:

Time-weighted return?      Money-weighted return?

A.      No                       No

B.      No                       Yes

C.      Yes                       No

D.      Yes                       Yes

A. Answer A

B. Answer B

C. Answer C

D. Answer D

答案和详解如下：

Q11.   B   07 Modular Level I, Vol. 1, pp.220-223  Study Sessions 2-6-c

The time-weighted return is not affected by cash withdrawals or additions to the portfolio. The money-weighted return measure would be affected by client additions or withdrawals. If a client adds funds at a favorable time, the money-weighted return will be elevated. In contrast, if a client adds funds at an unfavorable time, the money-weighted return will be depressed.