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Which performance metric would be most appropriate to evaluate the performance of an investment center manager...

Which performance metric would be most appropriate to evaluate the performance of an investment center manager when the potential for managerial conflicts of interest is high?

a. Residual Income RI

b. Internal rate of return IRR

c. Return on Investment ROI

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Answer #1

Please find below the solution.. let me know if you need any clariifcation..

correct answer is option c. Return on investment ROI

To assess the preformance of investment center manager ROI is the best measure.

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