The time-weighted rate of return measures the [...] of $1 initial investment over the measurement period.
Answer
compound growth rate
Tags
#reading-7-discounted-cashflows-applications
Question
The time-weighted rate of return measures the [...] of $1 initial investment over the measurement period.
Answer
?
Tags
#reading-7-discounted-cashflows-applications
Question
The time-weighted rate of return measures the [...] of $1 initial investment over the measurement period.
Answer
compound growth rate
If you want to change selection, open document below and click on "Move attachment"
Subject 3. Dollar-weighted and Time-weighted Rates of Return rs the timing and amountof cash flows. It is affected by the timing of cash flows. If funds are added to a portfolio when the portfolio is performing well (poorly), the dollar-weighted rate of return will be inflated (depressed).
<span>The time-weighted rate of return measures the compound growth rate of $1 initial investment over the measurement period. Time-weightedmeans that returns are averaged over time. This approach is not affected by the timing of cash flows; therefore, it is the preferred method of performance measurement. 
Summary
status
not learned
measured difficulty
37% [default]
last interval [days]
repetition number in this series
0
memorised on
scheduled repetition
scheduled repetition interval
last repetition or drill
Details
No repetitions
Discussion
Do you want to join discussion? Click here to log in or create user.