What are the limitation of using the internal rate of return of a portfolio as...
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What are the limitation of using the internal rate of return of a portfolio as a measure of the portfolio's yield? i. It assumes implicitly that the reinvestment rate is the same as the yield. ii. Using yield also assumes that we do not calculate effective rates but just bond equivalents rates. iii. It assumes that the yield curve is flat. None of the above Only (ii) and (iii) All of the above OOOO Both (i), and (ii) Only i) What are the limitation of using the internal rate of return of a portfolio as a measure of the portfolio's yield? i. It assumes implicitly that the reinvestment rate is the same as the yield. ii. Using yield also assumes that we do not calculate effective rates but just bond equivalents rates. iii. It assumes that the yield curve is flat. None of the above Only (ii) and (iii) All of the above OOOO Both (i), and (ii) Only i)
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