Q21 money weighted gives weightage to actual amount invested. So, if you were to invest huge amount when the returns were negative, the portfolio value would be drastically affected. So, the answer is C as major amount is invested in the year when returns were negative.
Q6 perfect negative correlation exists when there is an increase in return of one asset and decrease in another or vice versa. In asset 2 and 3, we can clearly see that asset 2 decreased from 12 to 6 whereas asset 3 increased from 0 to 6. Then we saw asset 2 moved from 6 to 0 and asset 3 moved from 6 to 12. Complete opposite direction.
Q21 money weighted gives weightage to actual amount invested. So, if you were to invest huge amount when the returns were negative, the portfolio value would be drastically affected. So, the answer is C as major amount is invested in the year when returns were negative.
Q6 perfect negative correlation exists when there is an increase in return of one asset and decrease in another or vice versa. In asset 2 and 3, we can clearly see that asset 2 decreased from 12 to 6 whereas asset 3 increased from 0 to 6. Then we saw asset 2 moved from 6 to 0 and asset 3 moved from 6 to 12. Complete opposite direction.