Understanding Performance Metrics in Alternative Investments

In the realm of alternative investments, performance measurement is crucial for evaluating the success of these non-traditional asset classes.

Common measures used to evaluate performance include the internal rate of return (IRR), time-weighted return, and money-weighted return. Understanding these measurements and their implications helps investors assess the effectiveness of their investment strategies.

Which of the following performance metrics is most appropriate when considering the impact of cash flows on an investment's performance?