Answer: both the realized value of an investment and the residual asset value of an investment.

## Explanation Multiple of Invested Capital (MOIC) is a key performance metric in private equity and alternative investments that measures the total value returned relative to the total capital invested. **Key points about MOIC:** 1. **MOIC Formula:** MOIC = (Realized Value + Unrealized Value) / Total Capital Invested 2. **Components considered:** - **Realized value:** Cash distributions or proceeds received from the investment - **Residual asset value (unrealized value):** The current estimated value of remaining holdings 3. **Why Option C is correct:** MOIC accounts for both realized returns (actual cash received) and unrealized returns (remaining asset value), providing a comprehensive view of investment performance. 4. **Comparison with other metrics:** - MOIC doesn't consider the time value of money (unlike IRR) - It's a simple multiple that shows how many times the investment has grown - Commonly used alongside IRR in private equity performance reporting **Example:** If an investor puts $10 million into a private equity fund, receives $5 million in distributions, and the remaining holdings are valued at $12 million, the MOIC would be: MOIC = ($5 million + $12 million) / $10 million = 1.7x This means the investment has generated 1.7 times the original capital invested.

Author: LeetQuiz .