Answer: Money-weighted return.

The **money-weighted rate of return** is most affected by the timing of cash flows into or out of the portfolio. If funds are added just before a market downturn, this measure will place greater weight on the subsequent poor performance, thereby depressing the return. In contrast, the **time-weighted return** neutralizes the impact of cash flows, making it the preferred measure for evaluating portfolio managers. The **arithmetic mean return** does not account for the timing or magnitude of cash flows, rendering it insensitive to such additions or withdrawals.

Author: LeetQuiz Editorial Team