The dollar-weighted return is the ________.

A) difference between cash inflows and cash outflows
B) arithmetic average return
C) geometric average return
D) internal rate of return

Dollar-Weighted Return

A measure of an investment's return, taking into account the timing and size of cash flows into and out of the investment.

Internal Rate of Return

An estimate of the profitability of potential investments, calculated as the rate of return that sets the net present value of all cash flows (both positive and negative) from the investment equal to zero.