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#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

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

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**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. 

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. 

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
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repetition number in this series | 0 | memorised on | scheduled repetition | ||||

scheduled repetition interval | last repetition or drill |

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