Which return measure is better Dollar weighted return Affected by any cash investments or withdrawals to the portfolio during the period over which the return is calculated Measure the returns to the owner of the portfolio allowing the benefits or losses associated with cash distributions and withdrawals during the measurement period Time-weighted return Not affected by any cash investment or withdrawals to the portfolio during the period over which the return is calculated Measure returns on the securities held in a portfolio (or performance of the manager)Which return measure is better • Dollar weighted return: – Affected by any cash investments or withdrawals to the portfolio during the period over which the return is calculated. – Measure the returns to the owner of the portfolio allowing the benefits or losses associated with cash distributions and withdrawals during the measurement period. • Time-weighted return – Not affected by any cash investment or withdrawals to the portfolio during the period over which the return is calculated. – Measure returns on the securities held in a portfolio (or performance of the manager)