The money-weighted return (MWR) is analogous to the internal rate of return (IRR) and accounts for the timing and magnitude of cash flows, including withdrawals and additional investments. This makes it an accurate measure of the investor's actual earnings on the invested capital (Option B). However, MWR is not suitable for comparing performance across different managers or individuals, as it is influenced by the specific timing and amounts of cash flows unique to each investor (Option C is incorrect). Option A is incorrect because MWR explicitly includes cash withdrawals and investments in its calculation, unlike arithmetic or geometric mean returns.