Answer: the same as that of Fund 2.

## Explanation **Multiple of Invested Capital (MOIC)** is calculated as: \[ \text{MOIC} = \frac{\text{Total Value Realized + Unrealized Value}}{\text{Total Capital Invested}} \] In this scenario: - Both funds **doubled the value** of their investments - This means both have a MOIC of **2.0** (since 2x the invested capital) - The **time taken** to achieve this return does **not** affect the MOIC calculation **Key Points:** 1. MOIC is a **simple multiple** that measures total value relative to invested capital 2. It does **not** account for the **time value of money** or the **holding period** 3. Both funds achieved the same **absolute return** (doubling the investment) 4. While Fund 1 achieved this faster, the **multiple** remains the same **Comparison with Other Metrics:** - **Internal Rate of Return (IRR)** would be **higher** for Fund 1 (since it achieved the same return in less time) - **MOIC** ignores the time dimension, so it remains identical **Correct Answer:** B - the same as that of Fund 2

Author: LeetQuiz .