单选题 Which of the following is TRUE with respect to the relationship of the money - weighted return to the time - weighted return? If funds are contributed to a portfolio just prior to a period of favorable performance, the : A. money - weighted rate of return will tend to be depressed. B. time - weighted rate of return will tend to be elevated. C. money - weighted rate of return will tend to be elevated.

【正确答案】 C

【答案解析】The time- weighted returns are what they are and will not be affected by cash inflows or outflows. The money- weighted return is susceptible to distortions resulting from cash inflows and outflows. The money - weighted return will be biased upward if the funds are invested just prior to a period of favorable performance and will be biased downward if funds are invested just prior to a period of relatively- unfavorable performance. The opposite will be true for cash outflows.