When calculating the Time Weighted rate of return if the measurement period < 1 year, [...] to get an annualized rate of return for the year.
Answer
compound holding period returns
Tags
#reading-7-discounted-cashflows-applications
Question
When calculating the Time Weighted rate of return if the measurement period < 1 year, [...] to get an annualized rate of return for the year.
Answer
?
Tags
#reading-7-discounted-cashflows-applications
Question
When calculating the Time Weighted rate of return if the measurement period < 1 year, [...] to get an annualized rate of return for the year.
Answer
compound holding period returns
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Subject 3. Dollar-weighted and Time-weighted Rates of Return sub-period: HPR = (Dividends + Ending Price)/Beginning Price - 1. For the first year, HPR 1 : (150 + 10)/100 - 1 = 0.60. For the second year, HPR 2 : (280 + 20)/300 - 1 = 0.
Calculate the time-weighted rate of return:
<span>If the measurement period < 1 year, compound holding period returns to get an annualized rate of return for the year. If the measurement period > 1 year, take the geometric mean of the annual returns.
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