The modified Dietz method measures a mutual fund's performance in which of the following ways?
You chose:
a)
It calculates a risk-adjusted return for a mutual fund’s performance by comparing the fund’s return and standard deviation at the end of a period.
The correct answer is:
b)
It reduces extensive daily calculations by assuming a constant rate of return throughout the period without having to value a portfolio on the date of each cash flow.
c)
It measures a mutual fund's performance by comparing the net asset value per share at the beginning and at the end of a period.
d)
It values a portfolio by expressing the daily incremental change in value as an index through which the return can be calculated.