perfume_qq

 

A) Beginning of period capital.

B) End of period capital.

C) Beginning of period capital adjusted by time-weighted cash flows.

D) Beginning of period, end of period or a time-weighted average capital may be used, provided it is applied consistently and fully disclosed.

Your answer: B was incorrect. The correct answer was C) Beginning of period capital adjusted by time-weighted cash flows.

All return calculations must use beginning capital adjusted for time-weighted cash flows during the period.