A Problem with a Portfolio Return Computation Is: ________

Multiple Choice

A problem with a portfolio return computation is: ________.

A) the underlying assumption is that all cash payments and inflows are made and received at the beginning of the period
B) we have to rely on the formula that is able to adjust portfolio returns with the same time horizon.
C) if two investments have the same return, but one investment makes a cash payment early and the other late, the one with early payment will be overstated
D) we cannot rely on the formula to compare return on a one-month investment with that on a 10-year return portfolio.