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NEW QUESTION: 1
Kelly Windsor and Joe Agosti, expatriates working in Yemen, are studying for the Level 1 CFA examination. This week, they are focused on new concepts in the asset valuation material. While sitting on his balcony overlooking the desert, Agosti creates the following true/false question to test Windsor's knowledge of dollar-weighted and time-weighted returns. Which of the following statements did he make FALSE?
A. If a client adds funds to an investment during an unfavorable market, the time-weighted return will be lower than actual.
B. The time-weighted return measures the compound rate of growth of $1 over a stated time period.
C. The dollar-weighted return applies the concept of internal rate of return (IRR) to investment portfolios.
D. If the investment period is greater than one year, an analyst must use the geometric mean approach when using the time-weighted return method.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
The time-weighted method is preferred because it is not affected by the timing of cash flows. This statement should read, "If a client adds funds to an investment during an unfavorable market, the dollar- weighted return will be lower than actual." The other statements are true.

NEW QUESTION: 2
You need to show the rolling average of the number of bugs that the testing team has opened, resolved, and closed.
Which report should you show?
A. Bug status
B. Bug trend
C. Burn rate
D. Build quality indicators
Answer: B

NEW QUESTION: 3
Which of the following maintenance signals is transmitted from a downstream site to an upstream site in OTN?
A. IAE
B. BDI
C. LCK
D. ATS
Answer: B

NEW QUESTION: 4
What does dragging the gamma slider to the left in the Levels dialog box do to the image?
A. Darkens the midtones
B. Brightens the highlights
C. Brightens the midtones
D. Darkens the shadows
Answer: C

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