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Money-Weighted Rate of Return (MWRR) vs. Time-Weighted Rate of Return (TWRR)
Suppose that you manage an investment portfolio to which cash is added periodically, and from which cash is removed periodically.ย A reasonable question to ask is this: How should you determine the correct overall return on the portfolio over a period of time, the one that you should report to clients and prospective clients?ย In […]