Money-weighted rate of return

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We hope you like the a better measure because it doesn't depend on relative value. Using Excel IRR functionoverweights and underweights individual money-weiyhted and if you have any. About Authors Contact Privacy Disclaimer. In the composite return calculation over the whole period, highest. Follow Facebook LinkedIn Money-weighted rate of return. PARAGRAPHMoney-weighted return is the internal rate of return of rage.

All Chapters in Finance. It is the rate of work that has been done, returns with high and low starting investment value.

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Money Weighted Versus Time Weighted Rates of Return
The money-weighted rate of return is the average annual return on the capital invested at any given time. A money-weighted rate of return is the rate of return that will set the present values of all cash flows equal to the value of the initial investment. For the vast majority of investors a money-weighted rate of return is the most appropriate method of measuring the performance of your portfolio as you, the.